Shaping the

Tertiary Education Advisory Commission

Te Ako Pae Tawhiti

SECOND REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION

STRATEGY QUALITY ACCESS

FEBRUARY 2001

The cover of Shaping the System features the worlds largest kauri tree, Tane Mahuta (or Lord of the Forest), which is located in the Waipoua Forest in Northland, New Zealand. According to Maori traditions, it is Tane Mahuta who procured Nga Kete o Te Wananga (the three baskets of sacred and secular knowledge) from the heavenly realm and brought them to the earthly realm.

Shaping the

Tertiary Education Advisory Commission

Te Ako Pae Tawhiti

SYSTEM
SECOND REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION
STRATEGY QUALITY ACCESS

FEBRUARY 2001
ISBN 0 477 01934 X

Tertiary Education Advisory Commission

Te Ako Pae Tawhiti

Ministers Foreword
Shaping a Shared Vision, the Commissions first report, set out new directions for the tertiary education sector. It argued that the challenge of ensuring all New Zealanders have access to lifelong learning in a knowledge society would require new ways of organising, delivering and recognising tertiary education and learning. This Report, Shaping the System, is the first of three to be produced this year that will map out in detail the policies which will bring about change towards that vision. This Report makes clear that if we are to be a knowledge society we need mechanisms, policy instruments and structures that will allow the tertiary education system to be steered more effectively. The changes proposed will place our tertiary education system at the very centre of our nations drive to be a knowledge society. It will be the focus of our hopes and ambitions. This is an enormous responsibility. I am confident the tertiary education community will meet this challenge. The future mapped out for our tertiary education and training providers is to become part of a nationbuilding programme that will see New Zealanders live in a prosperous and socially just society. I am delighted to see that the Commissions approach provides a way of retaining appropriate autonomy while encouraging innovative learning environments. I also welcome the Commissions commitment to a broad and inclusive vision of lifelong learning. The knowledge society must ensure that the potential of all New Zealanders is realised. The Shaping the System Report is impressive in its breadth and vision. Its recommendations are far-reaching. The Government wants to hear feedback on all of the recommendations, particularly those that may lie at the heart of the new system: the Tertiary Education Commission, expanded charters, profiles and functional classifications. The Government is keen to move as rapidly as possible to set a new direction in the tertiary education sector. We are equally committed to working with the sector and other key stakeholders to reach agreement on what needs to be done. A great deal of discussion took place during 2000. We are poised for change this year. The recommendations of Shaping the System will soon be reinforced by work on what the priorities and objectives for tertiary education should be, and then how those priorities and objectives are best accomplished. I am very enthusiastic about the direction and detail of the Commissions work. Education is the key to the future. It is time to unlock that potential.

Hon Steve Maharey Associate Minister of Education (Tertiary Education)

Tertiary Education Advisory Commission

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Table of Contents
Ministers Foreword Executive Summary Recommendations Preface
The Role of the Tertiary Education Advisory Commission An Integrated Set of Reports The Commissions Approach to the Report A Focus on both the Short and Long Term An Integrated Package Purpose of the Report Report Structure

i vi xiv 1
1 1 2 2 2 2 3

Chapter 1: Introduction Chapter 2: Critical Issues and Problems

2.1: Achievements 2.2: Problems with the Current System 2.2.1 Demand-driven and Competitive Pressures 2.2.2 Lack of Adequate Steering Mechanisms 2.2.3 Coherence 2.2.4 Failure to Fulfil Treaty of Waitangi Obligations 2.2.5 Inequitable Access 2.2.6 Scarcity of Resources

4 7
7 8 8 9 10 11 11 12

Chapter 3: Context for a Tertiary Education Strategy

3.1: Key Influences 3.1.1 The Development of a Knowledge Society 3.1.2 Changing Technology 3.1.3 Globalisation 3.1.4 Changing Demographics 3.2: Broad Objectives 3.2.1 Strategic and Effective Use of Resources 3.2.2 National and Local Responsiveness 3.2.3 Excellence in Knowledge Production and Application 3.2.4 Equitable Access and Recognition of Learning for Life 3.2.5 Treaty of Waitangi 3.3: The Approach to Shaping the System 3.3.1 International Examples 3.4: An Integrated Approach 3.4.1 A Systems Approach 3.4.2 A Partnership Approach 3.4.3 Management by Exception 3.5: The Tertiary Education Strategy

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14 14 15 15 16 17 17 19 21 21 24 25 25 26 26 26 26 27

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Chapter 4: The Steering Framework

4.1: Options for Improved Steering Instruments 4.1.1 Functional Classification 4.1.2 Charters 4.1.3 Profiles 4.2: Options for Central Structures 4.2.1 The Status Quo 4.2.2 International Experience 4.2.3 Integrated or Multiple Central Structures

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28 28 29 30 31 32 32 33

Chapter 5: The Tertiary Education Commission

5.1: Specific Options 5.1.1 Evaluating the Options 5.2: Structure and Function of the Tertiary Education Commission 5.2.1 Aims and Purposes 5.2.2 Functions and Powers 5.2.3 Accountability of the TEC 5.2.4 Structure and Operations 5.3: Implications for Other Central Structures 5.3.1 Minister 5.3.2 Ministry of Education 5.3.3 Skill New Zealand 5.3.4 Quality-Assurance Bodies 5.3.5 Career Services 5.3.6 Tertiary Education Advisory Commission

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34 34 39 39 39 42 42 45 45 46 46 46 47 47

Chapter 6: The Steering Instruments

6.1: Functional Classifications 6.1.1 Learning and Assessment Support 6.1.2 Community Education and Training 6.1.3 Industry or Professional Education and Training 6.1.4 Comprehensive Teaching 6.1.5 Specialist Teaching 6.1.6 Comprehensive Teaching and Research 6.1.7 Specialist Teaching and Research 6.1.8 Akoranga Maori 6.1.9 Further Classifications 6.1.10 Process of Functional Classification 6.2: Charters 6.2.1 Content of Charters 6.3: Profiles 6.3.1 Profiles to Have Two Parts 6.3.2 General Content of Profiles All Providers 6.3.3 Additional Content of Profiles Chartered Providers Only 6.3.4 The Process of Negotiating Profiles 6.3.5 Legislative Issues

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48 48 48 49 49 49 50 50 50 50 53 53 54 55 56 57 57 60 60

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Chapter 7: Legal Form and Protected Terms

7.1: Legal Form 7.1.1 Public Tertiary Education Institutions 7.1.2 Private or Community Tertiary Education Providers 7.1.3 Industry Training Organisations 7.1.4 Government Training Establishments 7.2: Application of Protected Terms 7.2.1 University 7.2.2 Polytechnic/Institute of Technology 7.2.3 Whare Wananga

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61 61 62 63 64 64 66 67 69

Chapter 8: Using the Steering Framework to Shape the System

8.1: Allocating Funding 8.1.1 Possible Statutory Criteria 8.1.2 Implications for the Funding System 8.2: Assuring Quality 8.3: Establishment, Recognition, and Change of Provider Status 8.4: Accountability and Governance 8.4.1 Accountability 8.4.2 Governance 8.5: Examples of the Application of the Steering Framework 8.5.1 The Role of Colleges of Education 8.5.2 Possible New Forms of Universities 8.5.3 Other Options for Addressing the Parity-of-Esteem Issue

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71 71 72 72 73 74 74 74 75 75 77 80

Chapter 9: Objections to the Commissions Proposals

9.1: Academic Freedom 9.2: Autonomy 9.3: Constraints on Political Action 9.4: Effectiveness 9.5: The Impact on Innovation, Responsiveness and Productive Efficiency 9.6: The Impact on Administrative and Compliance Costs 9.7: Determining What to Fund 9.8: Simpler, Cheaper Solutions 9.9: The Need for Urgent Action

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81 81 82 83 83 83 83 84 84

Chapter 10: Transition Arrangements

10.1: TEC Establishment Unit 10.2: Introduction of Interim Profiles 10.3: Re-Negotiation of Existing TEI Charters 10.4: Introduction of Charters for Non-TEIs 10.5: Identification of Centres or Networks of Research Excellence 10.6: Skill New Zealands Documents of Accountability 10.7: Legislative Review

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85 85 86 86 86 86 87

Concluding Note: Need for Ongoing Review Glossary of Education Terms and Acronyms Glossary of Maori Terms Glossary of Government Organisations iv

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Appendix 1: Guiding Principles Appendix 2: Summary of Issues in the Submissions

Introduction Differentiation and Parity of Esteem PTEs and their Funding Colleges of Education as Specialist Institutes Wananga ITOs as Part of the Tertiary Education System Intermediary Body Charters and Profiles Learning and Technology Maori and Pacific Peoples Issues

94 95
95 95 96 98 98 99 99 100 101 101

Appendix 3: Groups and Individuals Consulted

Tertiary Education Institutions Industry Training Organisations Maori Pacific Peoples Private Training Establishments International Business and Industry Sector Groups Other Organisations Working Groups

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105 105 105 106 106 106 106 106 107 107

Appendix 4: Current Arrangements

Forms of Provision Tertiary Education Institutions Other Forms of Provision Central Steering Mechanisms Establishment and Recognition of Providers Governance and Accountability Charters Statements of Objectives Statements of Service Performance and Annual Reports Quality Assurance Funding Central Structures The Minister and the Government Ministry of Education Skill New Zealand Department of Work and Income New Zealand Qualifications Authority Career Services Teacher Registration Board

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108 108 111 112 112 112 113 113 114 114 114 115 115 115 116 116 116 117 117

Appendix 5: The Provision of Teacher Education

Background Proliferation of Teacher Education Programmes

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118 118

Bibliography

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Executive Summary
Key Proposals
The Commission recommends the following changes to the central structures and policy instruments used to shape the tertiary education system: the creation of a new intermediary body, the Tertiary Education Commission (TEC), with responsibility for the whole tertiary education system; the application of a system of functional classifications of tertiary education activities; the strengthening and expansion of the application of charters; and the introduction of profiles of the activities of providers, as the basis for funding. These recommended changes are an integrated package of measures designed to address the serious problems and challenges facing the tertiary education system: the TEC would enable an integrated and strategic approach to tertiary education; functional classifications would enable greater differentiation, specialisation, and clarity of roles for providers within the tertiary education system; strengthened charters would enable the recognition of the particular distinctive character and responsibilities of individual providers; and profiles would enable the steering of funding in a manner that reflects both national and local priorities and demands, and promotes focus and specialisation.

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Problems and Challenges

Current structures and policy instruments in tertiary education are largely predicated upon demand-driven bulk funding systems, with little opportunity (and few powers) for the exercise of discretion in the allocation of funding. Conversely, in some areas, funding is highly prescriptive and restricted, and is not well integrated with other aspects of the system. While demand-driven funding has supported increased levels of participation, in a climate of scarce resources it has contributed to financial difficulties for many providers, promoted intense competition and duplication of programmes, and threatened the quality of provision and research. The current systems weak central-steering mechanisms, its lack of regulatory coherence, the difficulties it has faced in meeting Treaty of Waitangi obligations, and the inequity of access to it, make it poorly suited to respond to the challenges that it faces. These include the development of a knowledge society, changing technology, globalisation and demographic changes. See Chapter 2: Critical Issues and Problems

See 3.1: Key Influences

Approach and Strategy

The Commission concluded in its first report, and reaffirmed in this Report, that there should be a more integrated and strategic approach to the funding and regulation of tertiary education. This is necessary to safeguard and improve the quality and accessibility of the tertiary education system, and its relevance to New Zealands national interests. Such an approach should be designed to promote the strategic and effective use of resources, enable both national and local responsiveness, promote excellence in knowledge production and application, enable equitable access and recognition of learning throughout life, and enable the tertiary education system to operate in a manner consistent with the principles of the Treaty of Waitangi. These broad objectives recognise the importance of a wide range of issues for the future of tertiary education, including public tertiary education provision, research, Maori education, industry training, community education, second-chance education, and regional responsiveness, amongst other critical issues. These various objectives can be addressed through an integrated approach which draws upon the concepts of systemic analysis, partnership, and management by exception. The Commission has concluded that this integrated and strategic approach should involve the following elements: a comprehensive and coherent approach to policy and regulation for the whole tertiary education system, which recognises the distinctive roles of the diverse parts of the system; proactive steering of the tertiary education system, in a manner that engages stakeholders and balances the need for national and local responsiveness; the facilitation of greater specialisation and concentration to promote excellence; the facilitation of greater linkages to enable access, recognition, and efficiency; and the facilitation of partnership in the delivery of education for Maori. See Shaping a Shared Vision

See 3.2: Broad Objectives

See 3.3: Approach to Shaping the System

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In its forthcoming reports, the Commission will further explore the content of a strategy for tertiary education in New Zealand, and the way in which the various policy instruments, particularly funding, can be used to advance such a strategy.

Implications of an Integrated and Strategic Approach

A more integrated and strategic approach implies greater intervention by Government and greater focus and specialisation by tertiary providers. It also emphasises the importance of partnership between providers and with stakeholders. These imperatives must be carefully balanced with the important principles of provider autonomy, academic freedom, and responsiveness to local and regional needs. The Commission believes that achieving this balance requires the establishment of an intermediary body to steer the tertiary education system in a proactive manner. The purpose of this body should be to steer the system in the direction specified by the Government, but in a manner consistent with the principles of provider autonomy, academic freedom and responsiveness; and to foster stakeholder partnerships at national and local levels. Such a body would itself require a measure of autonomy for it to be effective.

See 4.2: Options for Central Structures

A Tertiary Education Commission

The Commission recommends that a Tertiary Education Commission be established as an Autonomous Crown Entity, with the following functions: strategic policy advice; regulatory advice; allocation of funding within agreed policy parameters; monitoring of performance; and research, facilitation and leadership. The TEC should provide advice on the strategic direction of the tertiary education system, including advising the Minister on the nature, form and spread of provision. It should advise the Minister on the exercise of a range of powers, including the establishment of institutions and the approval of charters. The TEC should be responsible for the allocation of funding to providers, within agreed policy parameters. This would include negotiating profiles, and determining which profiled activities would be funded. While the TEC should be responsible for monitoring the financial performance of providers, this should be a separate function from assuring the quality of tertiary education. The TEC should play a key role in facilitating greater co-operation and collaboration within and beyond the tertiary education system, and provide leadership based on research and evaluation of the system as a whole. The TEC should be accountable to the Minister for the performance of its functions, through a clear and transparent document of accountability. See 5.2.3: Accountability of the TEC See 5.2.2: Functions and Powers See Chapter 5: The Tertiary Education Commission

Structure and Operations of the TEC

The Commission believes that the TEC should have responsibility for policy advice and funding allocation for the whole tertiary education system, including community education,

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second-chance education and industry training. The structure and operations of the TEC should reflect the distinctive roles of the diverse parts of the system, while enabling greater linkages between them. The Commissions view is that a single coherent and comprehensive central structure would better facilitate the desired differentiation and complementarity of the tertiary education system, because its scope of coverage would mean that it would be able to steer all forms of provision. It would, however, be essential that the distinctive interests and concerns of particular sectors within the tertiary education system are safeguarded and addressed particularly research, industry training, community education, second-chance education, and Maori tertiary education. The board of the TEC would need to be composed of persons of high calibre, with a breadth of experience and expertise sufficient to enable the proactive steering of the tertiary education system in a manner that contributes to, and supports, national strategies. The Commission believes that achieving this would require a board of up to twelve members, including a chair. A minimum of two members should be Maori, reflecting the importance of the Treaty and the needs of Maori in the tertiary education system.

See 5.2.4: Structure and Operations

Implications for Other Agencies

The majority of the operational functions of the Ministry of Education with respect to tertiary education would become the responsibility of the TEC. The Ministry of Education would be responsible for monitoring the performance of the TEC, on behalf of the Minister. The Ministry would need to retain a policy-advice function in respect of tertiary education, within the context of wider education policy. The TEC would assume the responsibilities and functions currently performed by Skill New Zealand, including industry training and second-chance education. Careful transition would be required to ensure that there is minimal disruption to the services provided, but also that the opportunities provided by the new arrangements are realised. There would need to be close co-operation between NZQA and the TEC on matters of tertiary qualifications policy and quality assurance in tertiary education. There should, however, remain a clear distinction between funding allocation and quality-assurance processes and decisions. Career Services would have an important role to play in the new steering framework. The Commission plans to give further consideration to how Career Services can best contribute to the achievement of the co-ordinated and strategic approach it has outlined, including consideration of a possible central admissions system. See 5.3: Implications for Other Central Structures

Steering the Tertiary Education System

The TEC would require a range of policy instruments to enable it to steer the system. The Commission believes that a combination of functional classification of providers, charters, and profiles would provide the basis for decision making in respect of funding allocation and assist in the facilitation of greater specialisation, co-operation and collaboration (both within the system and with those outside it). See 4.1: Options for Improved Steering Instruments

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Functional classifications, expanded charters and profiles would enable the specification of information about the programmes and activities of providers: at different levels of detail (from very broadly with functional classifications to precisely with profiles); over different time periods (including the medium to long term with charters, and the short term with profiles); and for different purposes (including the steering of the tertiary education system as a whole and the allocation of funding). Together these policy instruments would facilitate greater specialisation, while retaining an important element of flexibility. They would provide Government with tools for distinguishing the services offered by different providers to ensure coverage around the country and discourage unnecessary duplication, but also allow providers to respond to local needs.

Functional Classifications
Functional classifications focus on the activities of providers and other tertiary education organisations, rather than their legal form or the terms used to describe them. The Commission has proposed a possible set of classifications for consideration, with the intention of developing a coherent and integrated set of classifications that allows greater differentiation, specialisation and clarity of roles for providers within the tertiary education system. Functional classifications would underpin and support the system of charters and profiles. See 6.1: Functional Classifications

Charters
The Commissions view is that charters need to be strengthened in both content and application. Charters would focus on the medium to long term, and would be used to define the broad scope of activities that the Government would fund. In this respect, they should apply to all publicly funded providers. They should include a greater focus on the special character or specialisation of the provider, and more clearly identify the contribution the provider makes to the tertiary education system as a whole. This would involve charters identifying how the provider would contribute to the achievement of the tertiary education strategy. Functional classifications would enable differentiation in the nature and content of charters for different providers. This would mean that, while all publicly funded providers would have charters, a community-education provider would not be subject to the same requirements as a university. See 6.2: Charters

Profiles
Profiles build upon current mechanisms, including statements of objectives and funding contracts. They would specify providers programmes and activities over a three-year period. The Commission proposes that profiles apply to all quality-assured providers, whether they have a charter or not. For chartered providers, profiles would specify which programmes and activities the Government would fund. Programmes and activities that fall within the scope of activities outlined in the providers charter would generally be funded, while other activities would require a special case to be made. Together, charters and profiles would provide a means for focusing providers on their mission, and encouraging specialisation and differentiation. This could involve deciding not to fund, or to limit funding for, certain programmes and activities, as well as focusing funding in priority areas. See 6.3: Profiles

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Shaping the System

The shape of the tertiary education system will need to continue to evolve in an organic manner, in response to a range of challenges. The steering framework would provide the means to shape that organic change in a manner that ensures it continues to meet the nations needs. Funding would continue to be a key tool in the shaping of the system. Two key tests desirability and quality would underpin funding allocation. Charters and profiles would be key tools for determining desirability. The Commission will address the issue of funding allocation in depth in forthcoming reports, including issues of distinctions in the funding of public and private providers. The assurance of quality would continue to be a separate function from funding allocation, but would be a necessary prerequisite to eligibility for funding. The organic growth and development of the system will need to provide for the establishment of new providers, and the change in status of existing providers. The tests of desirability and quality would underpin these decisions. Legal form is another means of providing shape to the tertiary education system. The Commission believes that, in addition to current forms of Tertiary Education Institutes (TEIs), there would be benefit in providing for specialist institutes. The Commission believes that colleges of education would be better classified as specialist institutes. The Commission also believes that there are benefits in streamlining the form of recognition for private and community providers. Additionally, the specific roles of industry training organisations (ITOs) and government training establishments (GTEs) need to continue to be recognised. The use of the terms university and polytechnic should continue to be protected. To these should be added institute of technology and whare wananga. The Commission does not believe it is necessary to continue to protect the term college of education given the changes in the nature of teacher education. , The shaping of the system will require robust monitoring and accountability, based upon reporting against charters and profiles. The Commission has considered two examples of the application of the steering framework in detail. It has concluded that colleges of education should no longer constitute their own separate form of TEI, and that on balance the arguments against the establishment of an additional type of university, a university of technology, are stronger than those for it. See Chapter 8: Using the Steering Framework to Shape the System

See 8.1: Allocating Funding

See 8.2: Assuring Quality

See 8.3: Establishment, Recognition, and Change of Provider Status

See 7.1: Legal Form

See 7.2: Application of Protected Terms

See 8.4: Accountability and Governance See 8.5: Examples of the Application of the Steering Framework

Centres and Networks of Research Excellence

The tertiary education system plays a crucial role in achieving a productive and innovative research community. The system must therefore be designed to promote and sustain world-class research capacity and capability, including that of Maori and Pacific peoples. This will require greater specialisation and concentration of research activity within the tertiary education system. The Commission recommends the establishment or recognition of national centres or networks of research excellence within the tertiary education system, with linkages to a national strategy and the international research community. They will See 3.2.3: Excellence in Knowledge Production and Application

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also need strong linkages with other parts of the tertiary education system and with those outside it. Researchers in the tertiary sector must not only be the leaders in producing fundamental knowledge, but must also be instrumental in disseminating new knowledge to the community and training the research workforce of the future. The latter two roles, in particular, must be undertaken in partnership with the wider research and business communities.

Objections
The Commission has carefully considered a wide range of possible concerns and objections with respect to its proposals. These included concerns relating to academic freedom, provider autonomy, constraints on political action, effectiveness, impact on innovation and responsiveness, administrative and compliance costs, the difficulty of determining what to fund, the possibility of simpler, cheaper solutions, and the need for urgent action. The Commission has not identified any major concerns that require modification to its proposals. See Chapter 9: Objections to the Commissions Proposals

Transition
The implementation of the Commissions recommendations will require a careful transition strategy. The Commission believes that, if the Government agrees to a Tertiary Education Commission being instituted, a TEC establishment unit should be created in 2001 to begin the process of establishing the TEC. The TEC establishment unit should work with the Commission and the Ministry of Education to ensure the rapid and effective implementation of the Governments decisions in relation to the Commissions recommendations. The Commission believes that work should begin in 2001 on: the introduction of interim profiles for 2002 (including identifying processes for rationalising existing programmes and activities which fall outside of interim profiles); the re-negotiation of existing TEI charters to reflect the directions outlined in this Report; the introduction of charters for non-TEIs as a pre-requisite for public funding in 2002; and the identification, as a matter of priority, of national centres or networks of excellence, linked to national strategies and the international research community. Careful planning would also be required to ensure a smooth transition from current central government arrangements to the TEC. Finally, a range of legislative provisions would require amendment to give effect to the Commissions recommendations. See Chapter 10: Transition

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Future Reports and Review

The Commission has reviewed its workplan in the light of its experience over the last nine months. It has determined a need to focus more clearly on the priorities and objectives for tertiary education, as a key guide to determining what should be funded. It will then address in more detail how the steering framework, outlined in this Report, should be used to achieve these objectives. This will include a detailed set of recommendations relating to the funding of tertiary education, but will also address important matters such as the promotion of co-operation and collaboration and ensuring that courses and learning opportunities are relevant to the needs of individuals, employers and the nation as a whole. The Commission believes that in this Report it has identified the key components of a steering framework that will enable the tertiary education system to meet the nations needs. There will, however, be the need for ongoing review. The TEC should have, as a central part of its role, responsibility for managing intentional change within the tertiary education system. The successful implementation of the Commissions recommendations will require an ongoing commitment by all parties to participative leadership and careful judgement in policy making, implementation, and evaluation. In the Commissions view, this can only happen if the Government and other stakeholders are willing to engage in continuing and iterative review of the tertiary education system.

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Recommendations
Recommendation 1
To achieve an inclusive knowledge society, the Government should pursue policies that are: open, outward looking, internationally oriented and engaged; vibrant, diverse, innovative and imaginative; fair, inclusive and democratic; informed by the Treaty of Waitangi; enriched by our natural and cultural heritage; and sustainably prosperous.

page 6

Recommendation 2

page 17

The Commission recommends the following broad objectives for a tertiary education strategy that supports the development and maintenance of a wealthy society: strategic and effective use of resources; national and local responsiveness; excellence in knowledge production, integration and dissemination; equitable access to, and recognition of, learning throughout life; and fulfilment of obligations under the Treaty of Waitangi.

Recommendation 3

page 19

The Commission recommends private providers be classified using the same system as that used for public providers to ensure that provider classification is coherent across the whole tertiary education system.

Recommendation 4

page 19

The Commission recommends that the regulatory framework for the tertiary education system balance the need for a common approach to the regulation and accountability of public and private providers with recognition of the important differences between them. Therefore: a) both public and private provision need to be profiled to promote collaboration and to avoid unnecessary duplication of effort and expense; and b) while funding systems should be transparent and coherent across both public and private sectors, this does not mean that public and private providers should necessarily be funded on the same basis.

Recommendation 5

page 19

The Commission recommends that independent research be commissioned on the roles and functions of organisations at present classified as private training establishments (including an examination of the extent to which they are complementary to, or in competition with, public providers), to inform the Commissions future reports.

Recommendation 6

page 19

The Commission recommends that all trans-national providers who wish to provide programmes of learning in New Zealand be subject to the same regulatory requirements as New Zealand providers, including any proposed changes to those requirements as a result of this Report.

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Recommendation 7

page 21

The Commission recommends that the central steering structures, in partnership with other government agencies with responsibility for research, ensure that the tertiary education system provides: focused and specialised fundamental and applied research; and genuine commitment to research-led teaching as the basis of all degree and post-graduate education.

Recommendation 8

page 21

The Commission recommends the establishment or recognition of national centres or networks of research excellence within the tertiary education system, with linkages to a national strategy and the international research community.

Recommendation 9

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The Commission recommends that the review of industry training clarify the role of industry training organisations (ITOs) within the overall tertiary education system as described in this Report.

Recommendation 10

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The Commission recommends that the review of adult and community education clarify the role of adult and community learning organisations, structures and systems within the overall tertiary education system described in this Report.

Recommendation 11

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The Commission recommends that the Government fund research on the development of e-learning technology in New Zealand, to assist the whole tertiary education system to capitalise on the potential of information and communications technology for effective delivery of learning.

Recommendation 12

page 25

The Commission recommends that the following be put in place, in order for Maori to participate fully in the tertiary education system and raise their level of achievement: support for types of tertiary education providers who are capable of meeting the needs of Maori; meaningful mechanisms for enabling Maori participation in governance and decision making; and systems for measuring the performance of providers and the wider tertiary education system in meeting Treaty of Waitangi obligations.

Recommendation 13

page 27

The Commission recommends that, to achieve the broad objectives identified in this Report, the following elements be recognised as an essential part of a high-level tertiary education strategy: a comprehensive and coherent approach to policy and regulation for the entire tertiary education system, which recognises the distinctive roles of the diverse parts of the system; proactive steering of the tertiary education system, in a way that engages stakeholders and is also responsive to national and local needs; greater specialisation and concentration to promote excellence; better linkages to improve issues relating to access, recognition, and efficiency; and partnership in the delivery of education for Maori.

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Recommendation 14

page 27

The Commission recommends that the following be put in place, to achieve its proposed tertiary education strategy: an improved framework for the steering of the tertiary education system; and improved central structures and capability to manage the steering framework.

Recommendation 15

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The Commission recommends that all providers and quality-assured learning environments be classified by: a) the functional classification of the activities undertaken; and b) the legal form of the provider or body responsible for the quality assurance of the learning environment; and c) the protected term used to describe the provider (where relevant).

Recommendation 16

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The Commission recommends that, for the purposes of describing their special character and function, providers and all quality-assured learning environments be classified in a manner that reflects their functions and activities.

Recommendation 17

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The Commission recommends that all non-TEI providers who wish to receive public funding be required to negotiate and agree a charter with the Minister, on the advice of the TEC.

Recommendation 18

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The Commission recommends that charters describe the broad mission and activities of each provider, with a focus on the medium-to-long term (5-10 years).

Recommendation 19

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The Commission recommends that each quality-assured tertiary education provider be required to negotiate a profile on a rolling-triennial basis.

Recommendation 20

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The Commission recommends that a profile provide information on the providers distinctive mission and the nature and level of the programmes and activities that the provider plans to offer over a three-year timeframe.

Recommendation 21
The Commission recommends that finalised profiles be public documents.

page 31

Recommendation 22

page 33

The Commission recommends that there be a single comprehensive central steering body for the whole tertiary education system.

Recommendation 23
The Commission recommends that a new intermediary body, to be known as the Tertiary Education Commission (TEC), be established with responsibility for the whole tertiary education system.

page 38

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Recommendation 24
The Commission recommends that the aims and purposes of the TEC be:

page 39

i) to ensure the development of a diverse, innovative, responsive, and accountable tertiary education system; ii) to ensure that the tertiary education system provides the basis for sustainable wealth creation; iii) to ensure life-long, equitable, and affordable access to tertiary education and training of an international standard of excellence; iv) to ensure that the tertiary education system is properly informed by and operates in conformity with the principles of the Treaty of Waitangi; and v) to protect academic freedom and to ensure a level of institutional autonomy consistent with the efficient use of resources, the national interest, and the demands of public accountability.

Recommendation 25

page 41

The Commission recommends that the TEC have the following statutory functions, powers and responsibilities: a) to advise the Minister, providers, and other stakeholders on the strategic direction of the tertiary education system; b) to advise the Minister on policy in relation to: i) ii) the nature, form and spread of provision within the tertiary education system; the allocation of tertiary education funding, including funding to support research within the tertiary education system; and

iii) tertiary education qualifications, in conjunction with NZQA (cf. s253(b) of the Education Act 1989); c) to advise the Minister on exercising the following powers: i) ii) the establishment of TEIs (cf. s162 of the Education Act 1989); the disestablishment or merger of TEIs (cf. s164 of the Education Act 1989);

iii) the use of protected terms (cf. s264 of the Education Act 1989); iv) v) vi) the recognition of ITOs (cf. s6 of the Industry Training Act 1992); the recognition of GTEs (cf. s159 of the Education Act 1989); the setting of mandatory requirements for charters (cf. s190 of the Education Act 1989);

vii) the approval of TEI charters (cf. s184 of the Education Act 1989); viii) the approval of non-TEI charters; ix) the withdrawal of non-TEI charters; and x) the appointment of TEI council members (cf. s171 of the Education Act 1989);

d) to negotiate and approve profiles (cf. s203 of the Education Act 1989); e) to allocate funding to tertiary education providers, including: i) ii) funding grants to TEIs (cf. s199 of the Education Act 1989); funding grants to non-TEIs with approved charters (cf. s238A);

iii) administration of other funding schemes (cf. s271 of the Education Act 1989); iv) funding to ITOs (cf. s10 of the Industry Training Act 1992);

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f) to monitor tertiary education provider performance, including: i) ii) monitoring of TEI financial performance (cf. s203 of the Education Act 1989); monitoring of non-TEI financial performance (cf. s238A of the Education Act 1989);

iii) obtaining information from providers (cf. s255 of the Education Act 1989); g) to provide advice to providers, learners, and those with an interest in the tertiary education system; and h) to research and evaluate the performance of the tertiary education system.

Recommendation 26
The Commission recommends that the Minister have the following powers in relation to the TEC: a) to appoint the chair of the board; b) to appoint the members of the board (but not the chief executive); c) to approve, with the board, a document of accountability; d) to determine overall tertiary education funding levels, policy, and parameters; and

page 42

e) to direct the TEC to provide advice or conduct research on any matters within its areas of responsibility.

Recommendation 27
The Commission recommends that: a) the board of the TEC have up to twelve members, including a chair;

page 43

b) board members be persons of the highest calibre with a breadth of expertise and experience sufficient to enable the proactive steering of the tertiary education system in a manner that contributes to and supports national strategies; c) no member represent a particular organisation; d) at least two members be Maori; e) remuneration for the chair and other board members be sufficient to attract the highest calibre of persons who have experience and knowledge relevant to the TECs work; f) all members be appointed for three-year terms, ideally overlapping, with a maximum of three consecutive terms for each board member; and g) the board members be required to work in the interests of the tertiary education system and the nation as a whole.

Recommendation 28
The Commission recommends that: a) meetings of the board be held on a regular basis;

page 44

b) the board have advisory bodies, with additional members from the relevant parts of the tertiary education system (and from outside the tertiary education system, if required); c) the advisory bodies of the board be responsible for areas such as post-graduate education and research, degree-level education, vocational and industry training, community education, and Maori tertiary education; and d) the board be able to establish permanent or temporary reference groups for cross-sectoral issues such as second-chance education, workplace learning, e-learning, access, equity, literacy, or Pacific peoples education.

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Recommendation 29
The Commission recommends that:

page 45

a) the TECs secretariat be sufficiently large to undertake the functions, powers and responsibilities of the TEC; b) the secretariat have the expertise and the organisational structure necessary to meet the needs of all the parts of the system; c) there be a unit within the secretariat with the specific competence required to address issues relating to the Treaty of Waitangi; d) there be a head of the secretariat, appointed by the TEC board, and accountable to the board for the performance of the secretariat; e) at any given time, a reasonable percentage of secretariat members be on secondment from the tertiary education system; and f) the secretariat have the means to ensure that the Board is in a position to understand and respond to the interests and concerns of regional providers and communities.

Recommendation 30
The Commission recommends that the Minister have the following new powers: a) granting the right to use protected terms (c.f. s264 Education Act 1989); b) recognising industry training organisations (c.f. s6 of the Industry Training Act 1992); c) approving non-TEI charters; and d) withdrawing non-TEI charters.

page 46

Recommendation 31

page 46

The Commission recommends that primary responsibility for tertiary education policy, tertiary education resourcing, and the monitoring of tertiary education be transferred to the TEC, but that the Ministry of Education retain responsibility for education policy as a whole (including tertiary-education-policy capability at a strategic level) and for monitoring the performance of the TEC.

Recommendation 32

page 46

The Commission recommends that the responsibilities of Skill New Zealand (for the Industry Training Strategy and for the funding of second-chance education) be transferred to the TEC, and that Skill New Zealand be disestablished.

Recommendation 33

page 46

The Commission recommends that NZQA and other quality-assurance agencies continue to have responsibility for the quality assurance of tertiary education providers.

Recommendation 34

page 47

The Commission recommends that the TEC have responsibility for providing input into the process of negotiating the document of accountability between NZQA and the Minister, and for providing advice on the appointment of NZQA board members, in conjunction with the Ministry of Education.

Recommendation 35

page 47

The Commission recommends that Career Services work in conjunction with the TEC, and that further consideration be given to the manner in which this can best be achieved.

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Recommendation 36
The Commission recommends that TEAC be disestablished once the TEC is fully established.

page 47

Recommendation 37

page 50

The Commission recommends that consideration be given to the following functional classifications of provider and quality-assured learning environments as a basis for preparing and negotiating charters and profiles: a) learning and assessment support; b) community education and training; c) industry or professional education and training; d) comprehensive teaching; e) specialist teaching; f) comprehensive teaching and research; g) specialist teaching and research; and h) akoranga Maori (Maori learning).

Recommendation 38

page 53

The Commission recommends that some or all of the activities of providers and quality-assured learning environments be classified within more than one functional classification, where this is agreed with the TEC.

Recommendation 39

page 53

The Commission recommends that processes be established by the TEC to enable Maori to play a central role in determining which providers should be classified within the functional classification of akoranga Maori.

Recommendation 40
The Commission recommends that, in approving charters, the Minister be advised by the TEC.

page 54

Recommendation 41

page 55

The Commission recommends that all charters include the following general types of information, although the exact content of charters will vary with the providers functional classification: mission and special character; contribution to New Zealands identity and economic, social and cultural development; contribution to the tertiary education system as a whole; approach to collaboration and co-operation with other tertiary education providers and those outside the tertiary education system; approach to fulfilling its obligations under the Treaty of Waitangi; contribution to improving equity of access; approach to supporting credit transfer and the recognition of prior learning; approach to meeting the educational needs of learners; approach to ensuring the professional development of its staff; approach to strategic planning; approach to ensuring that its activities are undertaken in an environmentally sustainable manner; and approach to ensuring its long-term financial viability, including capital investment and management.

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Recommendation 42

page 56

The Commission recommends that profiles be used as a basis for determining the allocation of public funding to eligible tertiary education providers, but not for determining which programmes and activities they may carry out, and that consequently s223(2) of the Education Act 1989 be repealed.

Recommendation 43

page 57

The Commission recommends that profiles contain two main parts: the first containing general information on the programmes and activities of the provider; and the second identifying, for providers with approved charters, the funding requested by the provider for its anticipated activities over the forthcoming triennium.

Recommendation 44

page 58

The Commission recommends that all profiles include the following general types of information, although the exact content of profiles will vary according to the providers functional classification: a) the providers mission and special character; b) the providers strategic direction; c) the providers contribution to the tertiary education system; and d) the providers planned activities and programmes over a three-year timeframe. In addition, the profiles of chartered providers should include: e) forecasts of demand for currently funded programmes and activities; f) planned new programmes or activities; g) planned rationalisation of programmes or activities; h) performance indicators in relation to relevant outputs and objectives (in relation to the charter provisions of the provider); and i) financial forecasts for the provider.

Recommendation 45

page 60

The Commission recommends that providers be required to undertake consultation with relevant stakeholders in the development of their profiles.

Recommendation 46

page 60

The Commission recommends that, where appropriate, the TEC initiate meetings between providers to discuss their respective profiles.

Recommendation 47

page 60

The Commission recommends that profiles be given a statutory basis, replacing and incorporating the current requirements in relation to statements of objectives, Skill New Zealand contracts, and special purpose grants.

Recommendation 48

page 61

The Commission recommends that the following legal forms be recognised for tertiary education providers: a) public tertiary education institutions; b) private or community tertiary education providers; c) industry training organisations; and d) government training enterprises.

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Recommendation 49

page 61

The Commission recommends that s162 of the Education Act 1989 be amended to add a new type of TEI, namely a specialist institute or college with the following statutory characteristics: A specialist institute or college is characterised by teaching (and, where relevant, research of a specialist nature) that maintains, enhances, disseminates, and assists in the applications of knowledge and expertise.

Recommendation 50

page 62

The Commission recommends that, in terms of the suggested functional classifications, a specialist institute or college be classified using any of the functional classifications except for comprehensive teaching or comprehensive teaching and research.

Recommendation 51

page 62

The Commission recommends that those TEIs currently established as a college of education under s162 of the Education Act 1989 be re-established as a specialist institute or college.

Recommendation 52

page 63

The Commission recommends that private and community tertiary education providers be recognised under s236 of the Education Act 1989; and that the term private training establishment be replaced with private or community tertiary education provider.

Recommendation 53
The Commission recommends that, before an ITO is recognised:

page 63

a) it be demonstrated to the Minister, on the advice of the TEC, that the recognition of such an ITO is desirable in the interests of the industries involved and the tertiary education system; and b) it be demonstrated to NZQA that the proposed ITO would meet the requisite quality standards.

Recommendation 54

page 63

The Commission recommends that, for any ITO to alter the scope of its recognition or merge with another ITO, a three-part process be instituted: a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, prior to an application for quality assessment being lodged with NZQA; b) it be demonstrated to NZQA that the ITO (or the proposed merged entity) would meet the requisite quality standards for the new scope of recognition; and c) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the interests of the industries involved and the tertiary education system.

Recommendation 55

page 64

The Commission recommends that current legislative limits on the funding of the delivery of training by ITOs (as opposed to the development of arrangements for the delivery of training) continue.

Recommendation 56

page 64

The Commission recommends that, in terms of the proposed functional classifications, an ITO have its activities classified as industry or professional education and training for the purposes of negotiating charters and profiles.

Recommendation 57

page 64

The Commission recommends a review be undertaken of the role and function of government training establishments (GTEs), to better integrate them with the rest of the tertiary education system.

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Recommendation 58

page 65

The Commission recommends that, before the right to use a protected term is granted by the Minister on the advice of the TEC, the provider in question demonstrate not only that it meets the requisite quality standards, but also that such action is in the best interests of the tertiary education system as a whole.

Recommendation 59

page 65

The Commission recommends that those providers which have been granted the right to use protected terms (including both TEIs and non-TEIs) be able to demonstrate that they are continuing to meet the requisite quality standards, as a part of existing quality-assurance processes.

Recommendation 60
The Commission recommends that the following terms continue to be protected in legislation: university; and polytechnic.

page 65

Recommendation 61
The Commission recommends that two new terms be protected in legislation: institute of technology as a synonym for polytechnic; and whare wananga.

page 65

Recommendation 62

page 66

The Commission recommends that a university be required to meet the requirements currently specified in s162(4)(a) & (b)(iii) of the Education Act 1989.

Recommendation 63

page 66

The Commission recommends that, in terms of the proposed functional classifications, a provider using the protected term university have its activities classified as comprehensive teaching and research. In addition, a university might have some of its activities classified as: specialist teaching and research; industry or professional education; and/or community education and training.

Recommendation 64

page 67

The Commission recommends that universities remain the primary providers of post-graduate education; and that universities be encouraged, through the profiling system, to co-operate and collaborate in the overall provision of post-graduate education and in the conduct of research.

Recommendation 65

page 67

The Commission recommends that where providers, other than universities, can demonstrate that they have the expertise, critical mass, and intensity of research required to support post-graduate programmes they be permitted to offer these programmes; and that the profiling system be used to encourage them to co-operate with universities (nationally or internationally).

Recommendation 66

page 67

The Commission recommends that universities be encouraged, through the profiling system, to concentrate on their core mission, namely the delivery of degree programmes and the conduct of research; and that they be discouraged from offering programmes which unnecessarily duplicate those of other providers.

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Recommendation 67

page 67

The Commission recommends that the profiling system be used to encourage universities to co-operate and collaborate with non-university providers in the regional provision of education and training, particularly at degree level.

Recommendation 68

page 67

The Commission recommends that a polytechnic or institute of technology be required to meet the requirements currently specified in s162(4)(b)(ii) of the Education Act 1989.

Recommendation 69

page 68

The Commission recommends that, in terms of the suggested functional classifications, a provider using the protected term polytechnic or institute of technology have its activities classified as: comprehensive teaching; community education and training; and/or industry or professional education and training (in at least four fields). In addition, a polytechnic or institute of technology might also have some of its activities classified as: learning and assessment support; specialist teaching; and/or specialist teaching and research (in areas where the polytechnic or institute of technology offers postgraduate programmes).

Recommendation 70

page 68

The Commission recommends that polytechnics be encouraged, through the profiling system, to concentrate on their mission, namely vocational education (including relevant degree-level education), community education, second-chance education, and research with an applied or technological focus; and that they be discouraged from offering programmes which unnecessarily duplicate those of other providers.

Recommendation 71

page 68

The Commission recommends that polytechnics be encouraged to focus their degree offerings in areas where they have a specific concentration of expertise and intensity of research, and where there are particular industry needs.

Recommendation 72

page 68

The Commission recommends that the profiling system be used to encourage polytechnics to offer postgraduate programmes only in collaboration with a university or research institute (nationally or internationally).

Recommendation 73

page 69

The Commission recommends that the profiling system be used to encourage polytechnics with a regional focus to base most of their programmes on the needs of their particular region, and to co-operate and collaborate with other providers to enable access to education and training for those in their region.

Recommendation 74

page 69

The Commission recommends that a whare wananga be required to meet the requirements currently specified in s162(4)(b)(iv) of the Education Act 1989.

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Recommendation 75

page 69

The Commission recommends that, in terms of the suggested functional classifications, a provider using the protected term whare wananga have its activities classified principally as akoranga Maori. In addition, a whare wananga may have some of its activities classified within other relevant classifications.

Recommendation 76

page 69

The Commission recommends that processes be established by the TEC to enable Maori to play a central role in determining which providers meet the statutory criteria for being defined as a whare wananga.

Recommendation 77

page 70

The Commission recommends that the protected term whare wananga may be applied to either a TEI or a private/community tertiary education provider.

Recommendation 78

page 70

The Commission recommends that priority be given to a review of the role of whare wananga in meeting national, local, hapu and iwi needs, including a consideration of the adequacy of current provision.

Recommendation 79

page 72

The Commission recommends that the TEC base its determination of whether or not to fund particular programmes and activities (as stated in the profiles of chartered providers) on clear statutory criteria.

Recommendation 80

page 73

The Commission recommends that progress continue on the harmonisation of processes operated by NZQA and other quality-assurance bodies, to improve the consistency of quality assurance across the tertiary education system.

Recommendation 81

page 73

The Commission recommends that the validation of providers performance in relation to their charters and/or profiles form a key component of the quality-assurance processes of NZQA and other quality-assurance agencies.

Recommendation 82

page 73

The Commission recommends that there be no a priori limit on the number of providers of a particular type; and that decisions on particular proposals for the establishment of new TEIs, changes in TEI status, or the funding of non-TEIs be made on a case-by-case basis that takes into account the relevant statutory criteria.

Recommendation 83

page 73

The Commission recommends that the TEC initiate reviews of provision within the tertiary education system in priority areas; and that it make recommendations to the Minister and to providers on any actions necessary to alter the nature or amount of provision.

Recommendation 84
The Commission recommends that, before any new TEI is established by the Government:

page 74

a) it be demonstrated to the Minister, on the advice of the TEC, that the addition of such a provider is desirable (that is, it is in the best interests of the tertiary education system and the nation as a whole); and b) it be demonstrated to NZQA that the proposed TEI would meet the requisite quality standards.

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Recommendation 85

page 74

The Commission recommends that, for any TEI to change its institutional type (or merge with another institution of a different type), a three-part process be instituted: a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, before an application for quality assessment can be lodged with NZQA; b) it be demonstrated to NZQA that the TEI (or the proposed merged institution) would meet the requisite quality standards for the proposed institutional type; and c) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the best interests of the tertiary education system and the nation as a whole.

Recommendation 86

page 74

The Commission recommends that the recognition of non-TEI providers continue to be based upon the provider meeting the requisite quality standards; and that decisions on public funding (for all or any of their activities) be at the discretion of the TEC, once a charter for the organisation has been approved by the Minister.

Recommendation 87

page 76

The Commission recommends that the existing colleges of education consider the full range of options for cooperation, collaboration, or merger with other providers, particularly universities.

Recommendation 88

page 76

The Commission recommends that a review be undertaken of the future shape of pre-service teacher education provision, taking into account international literature on teacher education, the role of the proposed Education Council, and the long-term needs of the school and early childhood education systems.

Recommendation 89

page 76

The Commission recommends that all providers of teacher education programmes be encouraged, through the profiling system, to co-operate with each other in the development and review of teacher education programmes.

Recommendation 90

page 78

The Commission recommends that a university might be termed a university of technology provided it meets the requirements of a university as set out in the Education Act 1989 and has a particular focus on industry or professional education and training. The Commission does not recommend that a separate legal category of university of technology be introduced.

Recommendation 91

page 80

The Commission recommends that further analysis be undertaken of the options for the validation of degree programmes offered by providers other than universities. The Commission does not recommend the establishment of a New Zealand University of Technology in the form currently proposed by the Association of Polytechnics in New Zealand.

Recommendation 92

page 85

The Commission recommends that a establishment unit be set up in early 2001 to begin the process of establishing the TEC; and that this unit work in conjunction with TEAC, the Ministry of Education, and the State Services Commission in implementing the recommendations in this Report.

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Recommendation 93

page 86

The Commission recommends that interim profiles be introduced for 2002, with support from the TEC establishment unit in an integrating and monitoring capacity.

Recommendation 94

page 86

The Commission recommends that the process of re-negotiating TEI charters to implement the recommendations in this Report commence in 2001, with support from the TEC establishment unit.

Recommendation 95

page 86

The Commission recommends that the process of negotiating charters for non-TEIs begin in 2001, with support from the TEC establishment unit.

Recommendation 96

page 87

The Commission recommends that the Skill New Zealand documents of accountability be reviewed in early 2001, with input from the TEC establishment unit, to enable the transition to the new central structures recommended in this Report.

Recommendation 97

page 87

The Commission recommends that, as part of the examination of legislative changes necessary to implement the recommendations in this Report, a substantive review be undertaken of the tertiary education provisions of the Education Act 1989 (Parts XIII to XXV, and XXVII) and of the Industry Training Act 1992, with the objective of improving the coherence and comprehensibility of these provisions.

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Preface
The Role of the Tertiary Education Advisory Commission
The Tertiary Education Advisory Commission1 was established by the Government in April 2000 to devise a longterm strategic direction for the tertiary education system. The overall aim of the strategy is to make New Zealand a world-leading knowledge society by providing all New Zealanders with opportunities for lifelong learning. Its current members are: Russell Marshall (Chairperson) Jonathan Boston Hugh Fletcher Tony Hall Patricia Harris John Ruru Linda Sissons Linda Tuhiwai Smith Ivan Snook. Dr Norman Kingsbury was Chair of the Commission from its establishment until November 2000. Dr Kingsbury played an important part in the development of this Report. Sir Colin Maiden, Special Advisor to the Chair, provided additional advice and input into the Commissions deliberations.

An Integrated Set of Reports

The Commission intends to publish four reports on the tertiary education system, of which Shaping the System is the second. The four reports will form an integrated set that provides a comprehensive strategic direction for tertiary education in New Zealand. Shaping a Shared Vision, the Commissions first report, sets out the Commissions overall approach to its task and has formed the basis of its future work programme. The vision and initial conclusions from that report have been built on in Shaping the System to provide a framework for shaping the tertiary education system. Shaping the System is concerned with the necessary mechanisms, policy instruments and structures to help the Government and other stakeholders work together in steering the development of the tertiary education system more effectively. The Commission has reviewed its workplan in the light of the reports it has produced to date. It has determined a need to focus more clearly on the priorities and objectives for tertiary education, as a key guide to determining what should be funded. It will then address in more detail how the steering framework outlined in this Report should be used to achieve these objectives. This will include a detailed set of recommendations relating to the funding of tertiary education, but will also address important matters such as the promotion of co-operation and collaboration and ensuring that courses and learning opportunities are relevant to the needs of individuals, employers and the nation as a whole. The Commissions third report will address the form and content of the tertiary education strategy, and will be submitted to the Associate Minister of Education (Tertiary Education) in June 2001. The fourth report will deal with the implementation of this strategy, including funding issues. This report will be submitted in August 2001.

The acronym TEAC and the term the Commission are used to describe the Tertiary Education Advisory Commission throughout this report.

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The Commissions Approach to the Report

The Commission has used an open and consultative process in preparing this Report. It received formal written submissions, entered into formal consultations, held informal discussions, attended conferences and workshops, and visited providers. It also established two formal working groups to provide further input into the process, an International Reference Group and a Research Working Group. Information and evidence from these various streams has been carefully considered by the Commission and are reflected in its proposals for a new steering framework. Because it has consulted so widely within the tertiary education system, the Commission believes that its proposals and recommendations will attract a strong measure of support from those most directly involved in providing tertiary education. The Reports recommendations have been necessarily detailed, as the Commission has wanted to provide sufficient specificity about its proposals so that readers will be in no doubt about what is intended. Much needs to be done at an implementation level, but Shaping the System provides the template for a more responsive and effective tertiary education system.

A Focus on both the Short and Long Term

The Commissions terms of reference2 direct it towards the long term, to provide strategic advice rather than short-term solutions. The Commission is also aware that the achievement of long-term aims must begin with short-term action. Therefore, while this Report sets out the Commissions advice on the long-term strategy for the tertiary education system, it also addresses the implications of that strategy for the short-to-medium term.

An Integrated Package
The Commissions proposals are intended to form an integrated and mutually reinforcing package. Accordingly, the rejection of one or more elements of the package will threaten the integrity and effectiveness of the recommended approach. This is not to suggest that there is no scope for improvements to specific elements but the Commission would need to reconsider its overall approach, and some of its recommendations, if a major part of the package were to be rejected by the Government.

Purpose of the Report

Shaping the System develops an outline of a proposed tertiary education strategy and the steering mechanisms, policy instruments and structures required to implement some of the 14 conclusions reached by the Commission in its first report. In particular, this Report concentrates on the following conclusions: designing the tertiary education system in a manner that responds to the challenge of lifelong learning in a knowledge society, which may require new ways of organising, delivering and recognising tertiary education and learning (Conclusion 5); viewing the tertiary education system comprehensively and as a whole, and the need for the various funding and regulatory arrangements within it to work together in a clear and coherent manner (Conclusion 6); bringing about more active engagement by the Government with the tertiary education system, to ensure responsiveness to the needs of society and linkages to a wider national strategy (Conclusions 7 and 8); encouraging greater clarity of roles and responsibilities within the tertiary education system (Conclusion 10); requiring the need for clear and agreed public statements of the distinctive character and contribution to the tertiary education system of each provider (Conclusion 11); and encouraging and enabling more active engagement with stakeholders and other interested parties outside the system (Conclusion 12).

The Commissions terms of reference can be found in Shaping a Shared Vision or at the Commissions website www.teac.govt.nz

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This Report focuses on the high-level strategy, policy instruments and structures necessary to shape the tertiary education system and sets the context for the remainder of the Commissions reports.

Report Structure
The Report begins with an Executive Summary, followed by the Commissions recommendations. Chapters 1 to 3 set the scene and analyse the major influences that affect the shape of the tertiary education system and the problems that arise from the current administrative arrangements. Chapter 4 outlines the Commissions proposed steering framework and the new intermediary body it is recommending. Chapters 5 to 9 describe in more detail how the proposed framework will operate. Chapter 10 addresses some of the transition arrangements. Appendix 1 sets out the guiding principles for the design of policy for the tertiary education system, as set out in Shaping a Shared Vision. Appendix 2 contains a summary and a list of the submissions made to the Commission. Membership of the Commissions two working groups can be found in Appendix 3, along with a list of those groups and individuals the Commission consulted. Appendix 4 provides a description of the current tertiary education system, including forms of provision, regulatory arrangements and administrative structures. Appendix 5 contains a case study on the provision of teacher education.

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Chapter 1: Introduction
In its first report, Shaping the System, the Commission described its vision for an inclusive knowledge society and stated that the tertiary education system has an important role in contributing to the economic growth and social development of New Zealand, including: cultivating the intellect and personal well-being; reducing inequality; preserving, renewing and transmitting culture; building research capability and creating new knowledge; responding to the needs of the labour market; supporting business, industry development and knowledge transfer; and promoting social cohesion. Such a vision requires a tertiary education system that ensures access for all learners to knowledge and learning, and also enables excellence in teaching, learning and research.3 The major difficulty the Government faces in achieving this aim is how to maximise participation rates and equitable access, while, at the same time, ensuring an adequate quality of provision in the context of ever-constrained budgets. This is not a new issue. The major review of post-compulsory education and training undertaken in 1988 (the Hawke report) concentrated on defining the governments role in securing effective funding and management systems while ensuring equity in both access and process in the post-compulsory education and training sector.4 This was within a context of improving access to post-compulsory learning opportunities for all New Zealanders. The Hawke report considered how to achieve the right mixture of devolution and accountability, and the appropriate balance between local initiative and national uniformity. It recommended a number of significant changes to the system as it then existed. Most of these were incorporated in Learning for Life (the Governments 1989 policy statement) and resulted in significant changes to the tertiary education system. The changes were designed to improve the administration of tertiary education, increase its flexibility and responsiveness and ensure the most effective use of resources. They were also designed to improve access and increase opportunity, develop pathways between institutions, and promote quality education and training. The Learning for Life reforms substantially changed the tertiary education system. All tertiary education institutes (TEIs) are now autonomous institutions with their own governing councils (previously this was only true of universities). They have the freedom to own and make decisions about their assets; and also design and develop their own courses and programmes. Institutional autonomy and academic freedom are protected in the Education Act 1989; and public institutions operate under charters negotiated with the Minister of Education. The New Zealand Qualification Authority (NZQA) was established to oversee the quality of all non-university qualifications for which public funding was sought. Polytechnics were able to offer degrees and against predictions at the time that this change would not have a significant impact on non-university institutions there are now 177 degrees offered by polytechnics, colleges of education and private training establishments (PTEs). The recommendation in Learning for Life that NZQA have a role in monitoring inter-university moderation and validation processes was not implemented. The reforms also led to changes in the funding of the tertiary education system. For instance, TEIs are in the main now bulk funded. The funding formulas used are applied uniformly, so that similar courses receive the

3 4

Shaping a Shared Vision, p.6. Hawke (1988), p. 3.

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same funding regardless of whether they are provided in polytechnics, universities, or PTEs. As well, institutions are able to generate income from the sales of services and students contribute a greater proportion of the costs of their courses. The Department of Education became the Ministry of Education, and the Training Support Agency and the Vocational Guidance and Careers Advisory Agency were both established as stand-alone agencies. These have since become Skill NZ and Career Services respectively. The Tertiary Research Board proposed in Learning for Life for the administration of tertiary-provider research funds was not established. Many of the recommendations in Learning for Life have been implemented either fully or partially. Not all of the changes, however, have resulted in their intended outcomes. The system in 2001 is as much a result of the unplanned consequences of the changes as the planned-for changes themselves. Learning for Life recognised that there was a need for continuing review of the tertiary education system and recommended that the Minister of Education consider establishing a post-compulsory education and training advisory council. This council would be a national body advising on concerns of national importance in postcompulsory training and education and would include employer and union representatives. The council would be compulsorily reviewed at the end of three years.5 Eleven years later, the Tertiary Education Advisory Commission has been established to provide what amounts to a review of the tertiary education system. It is worth noting that many of the issues and recommendations made in both Hawke and Learning for Life are as equally applicable now as they were in the late 1980s. This suggests that the changes recommended by the Commission to the tertiary education system will be evolutionary rather than revolutionary. The Commission in its first report stated that it would seek to build on the strengths and desirable features of the existing system.6 Therefore, the Commissions second Report, Shaping the System, provides an opportunity to identify what has happened as a result of the earlier policy changes and to identify further change that builds on the positive developments of the last decade. Many of the problems identified in Learning for Life such as lack of equity amongst institutions, uncoordinated policy advice, and failure to attract a wide range of students7 still persist within the system to some degree. Specific issues identified in Learning for Life that are still relevant in the tertiary education system include: fragmentation of the system into various unconnected sectors that often do not recognise the achievements and contributions that each has to offer; duplication of courses and services offered by different publicly funded institutions within a given area often resulting in unfilled places and a misuse of resources; a lack of coherent information about much of the system; sectoral infighting and a lack of overall priorities being set for the tertiary education system; and few incentives to manage effectively. Learning for Life stated that these problems were symptomatic of a system that needed a clear sense of direction and the freedom to manage its resources if it was to become more equitable, more responsive to industry and the wider community, and a greater source of excellence in our society.8 The Commissions first report also identified the importance of a clear sense of direction for the tertiary education system. One of the conclusions from this report stated: the tertiary education system requires a clear strategic direction. This direction should be responsive to the needs of society and the economy, and those of tertiary education providers themselves, and be able to evolve and adapt to sometimes rapid changes in those needs.9
5 6 7 8 9

Learning for Life, p. 57. Shaping a Shared Vision, p.12. Learning for Life Two, p.9. Learning for Life, p.9. Shaping a Shared Vision, Conclusion 7.

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This conclusion lies at the heart of Shaping the System and highlights the fact that the tertiary education system should form part of a wider national strategy. Part of this national strategy should provide a framework for strategic planning within the tertiary education system. This would then ensure that tertiary education policies operate in harmony with those for other policy areas, including research, science and technology, economic development, and the development of human capital in the widest sense. The current Government has undertaken a number of initiatives that the Commission believes could help develop a national strategy to drive strategic policy advice. These initiatives include this review of the tertiary education system by the Commission, a review of the role of science and innovation within the economy by the Science and Innovation Advisory Council, the holding of various business forums, and the current reviews of the industry training strategy and community and adult education. In the Commissions view, a national strategy should focus on strengthening New Zealands identity, developing New Zealands areas of comparative advantage, and enhancing New Zealands social well-being, economic prosperity and environmental sustainability. The tertiary education strategy in turn should focus on the key issues of access, achievement, and quality. Both strategies should interact in ways that allow them to shape and influence each other in a continuing dialogue. A national strategy enables the Government to articulate the kind of society it believes New Zealand should be aiming for. In Shaping a Shared Vision, the Commission described its vision for an inclusive knowledge society where all New Zealanders have access to relevant learning opportunities. The Commission believes this vision should steer the development of the tertiary education system and also the wider national strategy.

Recommendation 1
To achieve an inclusive knowledge society, the Government should pursue policies that are: open, outward looking, internationally oriented and engaged; vibrant, diverse, innovative and imaginative; fair, inclusive and democratic; informed by the Treaty of Waitangi; enriched by our natural and cultural heritage; and sustainably prosperous. In an environment of scarce resources, the Government needs to make choices on how those resources are allocated. The Learning for Life reforms introduced charters and corporate plans (now called statements of objectives) as key tools for allocating resources to individual TEIs. While these have been useful tools, there is a widely held view that they have not been used as well as they might have been and it is now time to review the range of current steering mechanisms.

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Chapter 2: Critical Issues and Problems

In Shaping a Shared Vision, the Commission defined the tertiary education system as: learning at all levels within tertiary institutions, programmes provided by private and government training establishments, business-based education, industry training, and all lifelong learning beyond the compulsory school system. It thus includes both formal and non-formal education, and what is termed second-chance education.10 This system is steered and influenced through a range of central structures,11 policy instruments and funding mechanisms. While a full description of the system as it operated in 1999 can be found in the Ministry of Education report New Zealands Tertiary Education Sector: Profile and Trends 1999, a brief description is given in Appendix 4. This appendix gives an overview of provider types, current regulatory tools and measures, current steering mechanisms, and funding. This chapter briefly summarises some of the key strengths and weaknesses of the tertiary education system as it has evolved since the Learning for Life reforms of the late 1980s. The intention here is to highlight the issues that need to be addressed in designing a policy framework for the tertiary education system.

2.1: Achievements
Among the positive features of the current tertiary education system are the diversity of provision and the relatively high levels of participation. As has been widely documented, participation rates in formal education have increased rapidly since the mid 1980s. For instance, participation in tertiary education by those aged 18 24 has grown from 20.5 per cent of the population in 1990 to 28.9 per cent in 1999. At the same time, participation in tertiary education for those aged over 25 has grown from 2.7 per cent of the population in 1990 to 4.5 per cent in 1999.12 These increases in participation since the mid 1980s reflect at least three major trends: first, a wider range of people are participating in the system; second, more students are returning to study later in life; and, third, the average length of study has increased. A snapshot of New Zealand tertiary education, as reported in 1999,13 shows that there were over a quarter of a million students enrolled in TEIs (approximately 7 per cent of the total population), and that around 400,000 participated in some form of tertiary education during the year. It is worth noting that the growth in total numbers began to slow in the latter part of the 1990s. It is continuing to show signs of levelling off; most likely because of demographic changes and the increased costs of tertiary programmes. Current levels of participation, however, compare favourably with most other OECD countries. Indeed, in relation to the participation of adults in education and training, New Zealand scores well above the OECD average: third overall, with first and second place going to Sweden and Switzerland respectively.14 Participation rates are only part of the story. Another important indicator of success is improved completion rates. Data from the Ministry of Education for 1999 show that over 60,000 students completed 63,000 programmes of study within TEIs a 31 per cent increase over completions in 1995. More than half the graduations were at a degree or postgraduate level. In summary, it is clear that the changes to the tertiary education system in the past decade have brought some significant benefits, including wider opportunities for participation and a more flexible pattern of delivery. But they have also brought a number of problems, including growing concerns about the overall coherence, responsiveness and effectiveness of the policy framework.
10 11

12 13 14

Shaping a Shared Vision, p.9. The departments and Crown agencies with responsibilities in relation to the regulation, funding and monitoring of the tertiary education sector. The central steering bodies in the current system are the Ministry of Education, Skill New Zealand, the New Zealand Qualifications Authority, and the New Zealand Vice Chancellors Committee. Ministry of Education (2000), p. 28. Ministry of Education (2000). Based on the International Adult Literacy Survey, 1994/95. (The best source of data that provides international comparisons is Education at a Glance: OECD Indicators 2000 edition, OECD 2000).

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2.2: Problems with the Current System

The problems currently afflicting the tertiary education system figured prominently in submissions to the Commission. For instance, it was argued by the Association of University Staff in its submission (121) that: the current policy framework has resulted in an unplanned and ad hoc expansion of tertiary education provision that has proved both wasteful and unnecessary for a country with a small population and limited resources. In particular, it has resulted in: an inefficient and ineffective use of the nations scarce resources; a narrowing of the range of available programmes; the loss of essential polytechnic trades programmes; the duplication of degree and other programmes; a decline in the quality of provision a threat to both the national and international credibility of New Zealands university level education; and, a threat to the viability of some essential public tertiary education institutions. Whether or not these statements reflect the full picture, the evidence presented to the Commission certainly suggests that there are some serious weaknesses in the current regulatory arrangements. In the Commissions view there are at least six key problems with the current policy arrangements. These are: an excessive reliance on a demand-driven funding system and competition between providers; weak central-steering mechanisms; a lack of regulatory coherence; a failure to fulfil Treaty of Waitangi obligations; inequitable access; and inadequate resources.

2.2.1 Demand-driven and Competitive Pressures

Under the current funding arrangements, the resources received by tertiary providers are largely dependent upon the numbers of students they can attract. This creates strong pressures for providers to compete with each other across a wide range of disciplines and activities. While a funding system of this nature encourages providers to be responsive to the needs and interests of students, it also has a number of well-recognised negative effects. These include greater difficulties for strategic planning at a provider level, increased risks associated with investing in infrastructure and expensive equipment, the proliferation of courses and programmes, an incentive to focus on quantity rather than quality, and expenditure of significant resources on advertising and marketing. At a macro level, demand-driven funding is unlikely by itself to produce a system that is able to respond to the changing needs of the economy and society particularly the kind of niche economy that New Zealand has. Compounding the problems associated with the current funding system is the absence of any requirement for individual providers to consider the potentially negative externalities (that is, third-party effects) of their behaviour. For instance, there is little to prevent a provider introducing a new programme in direct competition with an existing provider in the same region. If there is sufficient student demand to sustain two programmes of a reasonable quality, then there may be no difficulty. But if demand is not adequate, the more competitive environment may result in both providers struggling to offer quality programmes. Indeed, in some situations, the added competition may have damaging consequences not merely for the quality of the programmes in question, but also for the financial viability of one or other of the providers. Establishing new programmes is expensive, and where it merely duplicates the programmes offered by another provider in the same region such expenditure is of questionable value. Furthermore, providers can make substantial changes to the nature and level of the programmes they offer on an incremental basis without taking into account the cumulative impact of these changes on the wider tertiary education system. Whilst new programmes cannot be introduced unless they meet the appropriate qualityassurance standards, there is no provision for a similar test to be applied in relation to the desirability of providers making major adjustments to their educational character through the cumulative impacts of such changes.

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A related issue is that when providers decide to terminate the delivery of particular programmes (for example, because of inadequate student demand), they are not obliged to consult with the government or to consider how their decisions may affect the choices and opportunities available to learners. Where there are many other providers offering similar types of programmes, the decision by one or more providers to terminate their offerings may have only minimal consequences. If, however, the programme is unique or one of only a few in the country, decisions by individual providers may have much more serious implications for the tertiary education system as a whole. Courses and programmes are not the only aspects of the system subject to demand-driven pressures. New Zealands ability to sustain a world-class research capability is also threatened by an excessively competitive ethos, fragmented and under-resourced research communities, and a lack of planning and co-operation between providers. These problems are partly attributable to the fact that current funding incentives do not sufficiently encourage a focus on excellence, but rather make important research areas vulnerable to volatile student demand. In addition, the Commission has recognised that research in New Zealands tertiary education system is too often disconnected from the rest of the national innovation system and reflects too little concentration and focus by individual institutions on their areas of strength.

2.2.2 Lack of Adequate Steering Mechanisms

Many observers of the tertiary education system in recent years have raised concerns about the Governments limited capacity to intervene to protect the national interest. Some areas where the Government might wish to intervene are to improve allocative and productive efficiency, to encourage quality, to ensure the continuance of priority programmes, and to ensure adequate collaboration and co-ordination between providers. To start with, the Minister of Education has only limited powers to influence the desired level of provider diversity or prevent institutional drift. The powers that are available are largely negative (for example, preventing mergers or changes of provider type). In the case of PTEs or industry training organisations (ITOs), the Minister has little or no involvement in their establishment. Likewise, when a TEI faces severe financial difficulties as has occurred with increasing frequency in recent times the policy options available to the Minister are extremely limited and tightly prescribed.15 A further problem is that some of the current regulatory powers available to the Government are relatively light on statutory criteria. For instance, in the provision of courses above level 3 on the National Qualifications Framework (NQF), there are few statutory constraints on decisions over which providers or courses should be publicly funded once quality criteria are met. To take another example, there are insufficient statutory criteria to guide the Minister in making decisions about the establishment of new TEIs or changing the classification of institutions. The Government, however, still has powers of various kinds that it could exercise in certain circumstances. It could: refuse to fund a proposed new programme (or even an existing programme); restrict the number of student places funded for a particular programme; limit the period of time for which a particular programme is funded; or reduce the level of funding applied for particular programme or category of programmes. The Government could also use s199(1)(b) of the Education Act 1989 to provide special supplementary grants to ensure that a particular programme is maintained in circumstances where a provider no longer deems it to be financially viable. Potentially, the same provision could also be used to encourage certain kinds of collaboration or co-operation between providers. Additionally, the Government could employ s321 of the Act and make grants to other providers, or employ s97A of the Education Act 1964 and make grants to continuing education organisations.
15

During the drafting of this Report to Ministers, the Government has introduced legislation that will give the Minister of Education additional powers to intervene in the case of threats to the financial viability of public tertiary institutions (Education Amendment Bill No.2, December 2000).

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There are, however, difficulties with such approaches. Active intervention of this kind would pose an obvious threat to institutional autonomy and the affected providers might challenge the Governments actions. Also, the Government might deny funding for a programme of a particular provider in circumstances where s223(2) of the Education Act 1989 could not reasonably be invoked. In this case, a provider might seek judicial review of the Governments use of its discretionary powers. There could be two grounds for such a challenge: that the criteria being employed were unclear, unreasonable or inconsistent with the requirements of other sections of the Education Act 1989; or that the criteria were being applied in an unreasonable or inappropriate fashion. The lack of comprehensive information about the tertiary education system as a whole also poses a problem if the Government wishes to steer the system effectively. For instance, activity in the PTE and community and adult-education parts of the system is not fully documented, making it difficult to get a complete picture of what educational activities are being funded or the effectiveness of this expenditure.

2.2.3 Coherence
The coherence of the tertiary education policy framework can be challenged on many fronts. Two particular issues are worth emphasising at this point: an inadequate and inflexible system of provider classifications; and an inconsistent approach to the regulation of different parts of the tertiary education system.

Recognising difference
While tertiary education is made up of a wide range of providers, the categories used to classify these providers are extremely broad. There is little differentiation between providers, either within a classification or between classifications. This leaves the Government with little flexibility for steering individual institutions on the basis of provider type. There is, however, a rigid delineation between provider categories that, when coupled with the broad classifications, makes it hard for institutions to obtain recognition of their specialisation in teaching and research. It is clear that not all institutions within a classification are the same. Telford Polytechnic, for example, is very different from UNITEC. Similarly, the University of Auckland is very different from Auckland University of Technology. Or to take another example, Wai Tech, a Maori16 PTE, is very different from the Bible College or the Whitcliffe College of Art and Design. Yet all of these institutions are designated as PTEs. At present these differences or a specialist institutions area of expertise cannot be recognised or rewarded through differential funding.

Regulatory coherence
Different parts of the tertiary education system are governed by different legislation: the Education Act 1989 and the Industry Training Act 1992. The two Acts establish administrative and funding systems that are not complementary. The funding systems for industry training and second-chance education (Training Opportunities Programmes (TOP), Youth Training, and Skill Enhancement) are capped. They use different contracting processes, a different set of performance measures and are not integrated with the rest of the tertiary education funding system. Co-ordination between the various structures for administering the different parts of the system is poor. The various policies in relation to institutional provision, adult and community learning, workplace learning and or second-chance education are not properly integrated or even well linked. Some of the powers of intervention depend upon the provider type and the source of funding. For example, currently only TEIs are required to negotiate charters. By contrast, non-TEIs seeking EFTS-based funding are required, as are TEIs, to negotiate statements of objectives and statements of service performance and report upon these annually.
16

Within this Report, the word Maori is used as a generic term that includes: the whakapapa-based whanau, hapu and iwi constituencies; sociocultural or ethnically based Maori constituencies; and individuals.

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2.2.4 Failure to Fulfil Treaty of Waitangi Obligations

There has been considerable public debate, scholarship and policy development related to the Treaty of Waitangi and its significance to New Zealand society. The Commission is well aware of the sensitivities of this debate and recognises that open and informed discussion about the issues is healthy. However, in the Commissions view there has been a clear failure to achieve the following objectives: to promote understanding of the Treaty by all New Zealanders; to encourage high achievement and success for Maori; to build the capability of Maori society, business and industry; to develop the capability of Maori education organisations; to develop a Maori tertiary-education workforce; to provide culturally supportive, empowering learning outcomes; and to ensure collaboration across the system to improve outcomes for Maori. The Commission acknowledges that many tertiary education providers have made innovative and serious attempts to encourage the participation of Maori and reflect the strengths of Maori in positive ways. There are some fine examples of innovative Maori programmes across the whole system, including second-chance education programmes, industry training, student-support and bridging programmes, and post-graduate and research programmes. While there is something to celebrate in the diversity of initiatives that have arisen in the last decade, many of these activities have been ad hoc, highly dependent on the good will and commitment of particular individuals, and dependent on a very small Maori tertiary-education workforce. A further impediment to the tertiary education system fulfilling its Treaty obligations has been the barriers to the development of the three wananga which were the subject of a report by the Waitangi Tribunal.17 The Commission received submissions that argued for greater recognition of private and community providers and the roles they play in addressing Maori educational disparities. Private and community providers of education have offered specialised programmes and, therefore, catered for many students who would otherwise be denied access to educational opportunities.

2.2.5 Inequitable Access

Notwithstanding the significant strides that have been made in increasing overall participation rates since the mid-1980s, both Maori and Pacific peoples remain under-represented in tertiary education. Their pattern of participation is also different from that of the general population. Maori and Pacific peoples learners are over-represented in PTEs, where they make up 31 per cent and 10 per cent respectively of enrolled students. The pattern is the reverse for TEIs: Maori (11.6 per cent) and Pacific students (3.6 per cent) have much lower participation rates at these institutions than the general population.18 Maori students now make up 15.7 per cent of students enrolled in formal courses, but only one in twelve Maori who left school in 1998 enrolled at university in 1999. The age pattern of participation for Maori also differs from the general population: with 57 per cent of Maori in tertiary education being aged 25 or more compared with 49 per cent for non-Maori.19 This suggests that Maori students are less likely to go directly from school into some form of tertiary education. Pacific students are under-represented in formal tertiary education generally, constituting 4.7 per cent of students. One in eleven Pacific school leavers currently enrol at university.20

17 18 19 20

Waitangi Tribunal (1999). Ministry of Education (2000), p. 10. Ministry of Education (2000), p. 32. Ministry of Education (2000), p. 10.

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Skill New Zealand-based programmes predominate in PTEs, and so PTEs provide an opportunity for those who would not otherwise attend tertiary education. For Maori, in particular, PTEs appear to be an important pathway for attaining tertiary qualifications from TEIs later in life. Patterns in completing qualifications broadly follow enrolment patterns, with Maori and Pacific students being more likely than others to gain certificates or diplomas rather than degrees. Nevertheless, the number of Maori gaining first or post-graduate degrees was more than double that in 1995, while there was a 63 per cent increase in the number of Pacific students doing so.21 People with disabilities also have difficulty in obtaining equitable access to the tertiary education system. The Royal New Zealand Foundation for the Blinds submission to the Commission (69) observed that New Zealand continues to have lower educational outputs for disabled students compared to other countries with a similar ratio of disabled populations. The Commission agrees that there is a need to set priorities for improving the access of disabled students to tertiary education, so that the existing barriers and impediments to increased participation are removed.

2.2.6 Scarcity of Resources

The New Zealand tertiary education system has experienced a progressive reduction in the real level of public resources per student (on an EFTS basis) for more than 15 years. In nominal terms, total government spending on EFTS tuition subsidies has increased by an average of 2.2 per cent per annum from $0.99 billion in 1991 to $1.18 billion in 1999. At the same time, however, there has been an increase in the number of EFTS places funded, from 114,110 to 169,469, an increase of 48.5 per cent. The actual subsidy per EFTS place in TEIs has decreased by 13 per cent since 1991 and was $7,260 in 1999.22 This has contributed to the financial difficulties a number of institutions now find themselves in. A recent report on university funding23 noted that between 1980 and 1999 real funding from Vote: Education per EFTS fell by 36 per cent or $3,821. This represented an average annual rate of decline of 3.2 per cent. While fees have been increased significantly for courses, in many case these have failed to fully compensate for the reduction in public funding per EFTS. Additionally, the report revealed a substantial deterioration in the ratio of academic staff to students over the same two decades. In fact, the EFTS-to-staff ratio increased from 12.5 in 1980 to 18.4 in 1998, an increase of 6 students per academic staff member or 48 per cent. These trends raise serious questions about the capacity of New Zealands tertiary system to protect the desired level of quality in relation to teaching and research. The total income of TEIs grew by 64 per cent between 1992 and 1999 to reach $2.12 billion. This reflects increased student numbers, higher fees and increased income from research grants and contracts. The proportion of funding gained by TEIs from sources other than EFTS-based subsidies and student fees increased from 12 per cent in 1992 to 23 per cent in 1999. Predictably, universities have the highest proportion of this kind of income at 29 per cent. Colleges of education and wananga are most heavily reliant on public funding. One of the notable trends has been a significant increase in the level of public funding received by PTEs. This is largely a result of the decision in 1998 to fund PTEs on the same basis as TEIs from the beginning of the year 2000. EFTS-based subsidies for PTEs rose from $7.0 million in 1998, to $17.7 million in 1999, and to an estimated $91 million in 2000. This now represents around 7.3 per cent of the Governments estimated spending on EFTS subsidies of $1,247 million. It is anticipated that PTEs will receive $130 million in EFTSbased subsidies in 2001 and $155 million for 2002.24

21 22 23 24

Ministry of Education (2000), p. 42. Ministry of Education (2000), p. 13. Scott and Scott (2000). Data from the Ministry of Education: April and August 2000 Single Data Returns.

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The substantial increase in public funding of PTEs has fuelled debate over the place of private providers in the tertiary education system. Submissions to the Commission (as summarised in Appendix 2) revealed highly divergent views over the desirability of this development. In the Commissions view, the issue is not primarily whether an activity should take place in the public or private sphere, but the extent to, and the manner by, which it should be regulated, and the rights and responsibilities associated with it. Pressure on resources continues to affect the funding from the Government, and industry, for research and development by institutions within the tertiary education system although funding from government has increased recently. New Zealands competitors and partners are all pursuing integrated and aggressive policies to strengthen and accelerate their innovative capacity. These policies include the development of centres of excellence such as those in Australia and Canada which integrate universities with industry. In contrast, OECD studies of innovation management25 show that New Zealand is close to the bottom of OECD countries, by most measures of innovation investment.26 The remainder of this Report endeavours to address these problems and present a strategy and steering framework for shaping the system in ways that will make it more responsive and effective within the current funding constraints.

25

26

OECD (2000). The knowledge-based economy: A set of facts and figures, Meeting of the Committee for Scientific and Technological Policy, 22-23 June, (2000). Innovation Summit Implementation Group (2000).

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Chapter 3: Context for a Tertiary Education Strategy

The previous chapter described the major problems confronting the tertiary education system. This chapter further develops the context for the Commissions proposed tertiary education strategy. The first section looks at some major trends and influences that are shaping the system. The next section contains a set of goals or broad objectives that will underpin the strategy. The concluding section describes the Commissions integrated approach to developing a strategy and sets out the strategys core elements.

3.1: Key Influences

The key influences that are shaping the New Zealand tertiary system include: the development of a knowledge society; changing technology; globalisation; and demographic changes.

3.1.1 The Development of a Knowledge Society

Knowledge and learning have always been of central importance to society; and in todays modern economy the tertiary education system plays a pivotal role in meeting the nations knowledge needs. But changes in the nature of knowledge production that is, changes in who creates knowledge and where have the potential to reshape our society and economy. The knowledge society refers to this profound change, similar in scope to the expansion of literacy in the wake of the printing press. The knowledge revolution is not fundamentally about information, communications technology, or other hightech developments. These are essential to it, but they are the equivalent of the printing press in the spread of literacy the vehicle, not the destination. What is fundamentally involved in the knowledge society is the radical democratisation of knowledge production and use. As a number of writers have identified,27 the focus is increasingly upon distributed forms of knowledge production and dissemination. The emergence of highly distributed knowledge production systems has important implications for TEIs, as they can no longer operate as self-contained, isolated institutions if they are to be relevant and effective. Increasingly important elements of knowledge production are taking place in the application of knowledge, and TEIs must be involved in these activities if they are to be involved at the cutting-edge of research. Researchers located within a broad range of institutions and firms can now more easily collaborate across institutional, national and disciplinary boundaries. In a nation of limited resources such as New Zealand, harnessing all the resources in a given research field in this way is particularly important. As well, there are greater expectations in the workplace that all workers can integrate knowledge across disciplines and areas of work but still retain appropriate specialist knowledge.28 The 3Rs are being superseded increasingly by the 6Cs: Communication, Computation, Critical thinking, Co-operation, Creativity, and Computer literacy. These shifts in the production, application and dissemination of knowledge and the new sets of skills that are required in the workforce account for some of the important changes experienced within the tertiary education system over the past decade. Tertiary providers will have little option but to adapt further, if they are to meet the challenges posed by the knowledge society. In some disciplinary areas, the high costs of knowledge production make it imperative for the Government to set priorities in order to manage and guide the system.

27 28

See Gibbons (1998); Mathews and Johnston (2000). Harvey (1998).

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3.1.2 Changing Technology

Rapid technological change will continue to influence the shape of the tertiary education system and the way in which learning takes place. One of the most significant developments in recent times is e-learning that is, learning and/or teaching which is delivered through electronic media such as the Internet. Use of the Internet means that the methods used to deliver education programmes no longer have to be either synchronous (real time) or asynchronous (independent of time). They can be a mixture of both. This allows a wider range of learners to access learning and a wider variety of learning styles to be catered for. It also means that it can be the learners choice how they learn rather than the teachers choice. Another feature of e-learning is that the black-box of teaching and learning can be unbundled so that its component parts can be separated out and managed independently of each other. In this way, the content of a teaching package can be independent of the tutoring and learning support, the pastoral care, the assessment, the awarding of credit and so on. This means a provider can offer the entire suite of products and services themselves, or specialise in one area only and contract out the remaining services. The formation of key strategic alliances between specialist providers will continue to be a feature of the e-learning environment. E-learning is placing new demands on the tertiary education system in New Zealand. Students can now shop throughout the world for courses and programmes that meet their learning needs and interests. Students will want systems that ensure: portability of course credit and of qualifications because they can study where and when they want, a student may want to study courses with a variety of providers; articulation of courses both within New Zealand institutions and also globally tertiary education providers will need to work together to develop a system that recognises and awards credit, along with programmes that allow a wider variety of elective components; courses that fit within a global context, while retaining a unique New Zealand perspective; and international recognition of New Zealand qualifications this will provide quality assurance for prospective students and could be provided through partnerships with international providers, through validation exercises or through accreditation activities.

3.1.3 Globalisation
Globalisation is a complex, interactive mix of elements spanning political, economic, technological, social and cultural dimensions. It is beginning to influence all aspects of society. The growth in e-commerce is an obvious example of how business relationships and distribution channels are changing: companies no longer need to have to have a physical presence in the country in which they are operating. People, too, are increasingly mobile and may live in or run their affairs from more than one country. Tertiary education is no different it is increasingly becoming a global activity. As in other countries with wellregarded tertiary education systems, there has been a rapid expansion of the number of international students coming to New Zealand.

Trans-national education
There has also been a rapid expansion of institutions operating trans-nationally, either as part of an alliance with another education provider or, in some cases, as a corporate entity. Australian institutions, in particular, have been aggressive in establishing off-shore operations to expand their market share. These trends will affect the New Zealand tertiary education system since this country is now a party to the General Agreement on Trade in Services. In effect, New Zealand has provided market access for overseas private primary, secondary and tertiary education services, with no limits on cross-border supply or commercial presence. New Zealand now needs to consider the implications of this decision:

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trans-national providers can operate in New Zealand with no restrictions other than those related to all foreign investment; no requirements are placed on these providers to meet New Zealand quality standards unless they are seeking public funding for their courses, or their courses and programmes are linked to the National Qualifications Framework (NQF); trans-national provision of education provides opportunities for New Zealand providers to market both their programmes and areas of specialisation off-shore; and recognition of learning and transfer of credit arrangements, such as the Mutual Recognition Agreement with Australia, have to be able to take into account international standards, and social and cultural differences.

Mutual recognition of qualifications

Trans-national recognition is mostly handled on an ad-hoc basis in New Zealand. The Ministerial Declaration of Confidence in the equivalent standing of Australian and New Zealand vocational education and training qualifications has begun to provide a framework for the mutual recognition of vocational qualifications between New Zealand and Australia. People from other countries seeking recognition of their qualifications must submit their academic transcripts to NZQA for assessment. These types of processes are time consuming and do not assist the easy transfer of learning. Further afield, the European Union has sought to find ways of unifying the tertiary education system across its member countries. The Bologna Declaration29 is one outcome of this process. In this Declaration, the member countries pledge to find ways to recognise each others graduates and qualifications, work to develop a single credit-transfer system and to establish mutual-recognition agreements for professional practice.

3.1.4 Changing Demographics

Another major influence upon the future shape of the tertiary education system will be the changing demography of New Zealand society. In the medium-term significant changes are likely to include: rapid growth in the number of 10-16 year olds over the next five years particularly in Auckland; continued increases in ethnic diversity, younger age structures, and accelerated growth of non-European ethnic groups, such as Maori, Pacific and Asian peoples; a large sustained rise in the proportion of older persons over the next two decades, including the rise in numbers of older persons in the workforce; a continuing decline in the predominance of nuclear families (supported by a male breadwinner) and proliferation of other family types, especially those headed by a sole parent; a continuing shift in employment away from the goods-producing sector towards the service sector; and an increase in demand for skilled workers. There has been a steady increase in the Maori population and immigration by Pacific and Asian peoples (predominantly in the upper half of the North Island). Statistics NZ projects that the total New Zealand resident population will grow from 3.7 million (1996) to 4.8 million (2051). Statistics NZ also estimate that the Maori population will grow from 548,000 in 1996 to 993,000 by 2051 (an 81 per cent increase). Pacific peoples are the fastest growing population group in New Zealand (between 1986 and 1996 the population increased by 55.2 per cent). In 1996 Pacific peoples made up about 6 per cent of the population and this is projected to more than double by 2051.30 By 2016, nearly half of all students and an increasing proportion of New Zealands working-age population will identify as being of Maori, Pacific or Asian descent. New Zealand's economic and social success will be influenced to a greater degree by their skill level. This highlights the importance of raising achievement levels and reducing the current disparities between ethnic groups. The tertiary education system is therefore likely to face a continuing shift in the mix of its student population.
29 30

The Bologna Declaration: An explanation http://www.crue.upm.es/eurec/bolognaexplanation.htm Ministry of Pacific Island Affairs (1999).

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It is expected that the population in the core age group for tertiary education will continue to decrease until about 2003. However, because of rapid growth in some populations (for example, Maori and Pacific peoples) this age group will increase from 2003 to 2011. If participation remains at 1999 levels, these population trends mean that tertiary roll numbers will decline slightly over the next year or two, and then start increasing as the population bubble moves into the core tertiary-education age group. The Ministry of Education estimates that enrolments will be about 5 per cent higher in 2011 than in 1999. This represents a much lower rate of growth than has occurred since the mid-1980s. For the medium term, therefore, the tertiary education system as a whole is likely to experience a period of relative stability in terms of enrolments. Against this, further substantial changes can be expected in relation to the pattern of demand (for example, fields of study and geographic distribution). This implies that many providers will not be able to fund new developments from enrolment growth, in contrast to the pattern of the past decade or so.

3.2: Broad Objectives

To deal with its current problems and to face the challenges posed by major trends, the tertiary education system needs to be better steered. In Shaping a Shared Vision, the Commission identified a set of principles31 to be used to drive policy development and these can be used to develop a number of broad objectives that form the basis of a tertiary education strategy. These are: using the limited resources available to the tertiary education system in a strategic manner and, in so doing, minimising waste and unnecessary duplication of services;32 ensuring that the system remains responsive to the demands placed on it by the Government and other important stakeholders;33 ensuring that the system meets international standards of excellence in both research and learning;34 ensuring that the system is accessible to all New Zealanders and provides appropriate recognition of learning;35 and ensuring that the system operates in a manner consistent with the principles of the Treaty of Waitangi.36

Recommendation 2
The Commission recommends the following broad objectives for a tertiary education strategy that supports the development and maintenance of a wealthy society: strategic and effective use of resources; national and local responsiveness; excellence in knowledge production, integration and dissemination; equitable access to, and recognition of, learning throughout life; and fulfilment of obligations under the Treaty of Waitangi. The rest of this section shows how these broad objectives can help develop a strategy for the tertiary education system.

3.2.1 Strategic and Effective Use of Resources

While the Commission believes that a more planned approach to policy and regulation of the system is needed to address the problems identified in Chapter 2, it recognises the importance of balancing both local and national responsiveness and public and private provision. In the Commissions view, tight central control is inimical to the achievement of an effective, efficient, high-quality tertiary education system. And it will not meet the needs of a knowledge society or foster adequate local responsiveness and innovation.

31 32

Shaping a Shared Vision; p. 12; and also Appendix 1 of this Report. Reflects Guiding Principles covered by bullet points 10, 11 and 12 (See Appendix 1). 33 Reflects Guiding Principles covered by bullet points 3, 4, 5, 7, 8, 9 and 14 (See Appendix 1). 34 Reflects Guiding Principles covered by bullet points 13 and 15 (See Appendix 1). 35 Reflects Guiding Principles covered by bullet points 1 and 2. 36 Reflects Guiding Principle covered by bullet point 6 (See Appendix 1).

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Specialisation and diversity

In the Commissions view, a greater emphasis on specialisation is required if the tertiary education system is to meet the challenges outlined earlier in this Report. Modern societies are increasingly diverse socially, politically, and ethnically, requiring a wider range of learner needs to be met, including those with disabilities or with special needs. Specialisation enables individuals, groups and providers to focus on what they do best and encourages the disaggregation of activities so that different parts of an activity can be carried out by specialists. This in turn can bring about greater efficiency and higher quality (for example, via the creation of centres of excellence). At the same time, increased specialisation and diversity strengthens the need to build and maintain adequate levels of co-operation and collaboration within the tertiary education system, and with business and industry. In short, the key is to ensure that all those within the system are able to play a role and make their own distinctive contribution.

Public tertiary education

The Commission endorses the longstanding role of the state as a major provider of tertiary education at all levels, believing this to be in the interests of ensuring a diverse, equitable, high-quality, and comprehensive tertiary education system. There are a variety of ways in which the state could organise the provision of tertiary education to make best use of the resources available. The first of these is to retain a public system of highly autonomous statutory corporations, with local governance structures and only a small minority of governors appointed by the Government. This enables the Government to focus on establishing national priorities and policy goals and leaves operational management to individual institutions. An alternative model is that of a national unified system of public education. One such model is provided by the State of California, which consists of three separate levels (each with multiple campuses) under the coordinating umbrella of the California Post-Secondary Commission. In some respects, New Zealand had elements of the Californian model for university education when it had the University of New Zealand until it was abolished in the early 1960s. It is important to note that, even in systems where there is a single co-ordinating body, there is still a degree of competition between the various campuses. For example, the individual campuses of the University of California system have a relatively high degree of autonomy.37 It is worth noting that the internal transaction costs and the bureaucracy involved in such large, unified systems can be significant. An alternative to creating a single, unified system for public tertiary education (or particular levels of tertiary education) is to seek to rationalise provision on a regional basis through forced mergers, as exemplified by the Dawkins reforms in Australia in the late 1980s. The international literature on the desirability of mandatory mergers of institutions is mixed. Where there is a good institutional fit, such mergers may generate savings and improvements in educational outcomes. Where there is not, there can be serious difficulties.

Private provision
The Commission recognises that private providers of various kinds play an increasingly important role in the provision of education and training, including a major role in second-chance education. They provide pathways so that groups currently under-represented in TEIs can access the system. This is a complementary role to that of the public sector, and the Commission believes that both public and private providers should work together to meet the needs of learners and other stakeholders. At present, PTEs receive the same level of EFTS subsidies as TEIs and this has led to debates about whether this is the best use of public money. One response to this could be to remove all public funding from the private sector. But given the role private providers fulfil in promoting diversity within, and access to, the system, such a move would not be prudent without a good deal more information and analysis.
37

Bowen (1997).

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It should be borne in mind that TEIs, in addition to providing learning opportunities for students, also perform a public-good role of disseminating knowledge to the community and acting as a critic and conscience of society. These roles are not required of private institutions, and this is one of the major differences between the two parts of the system. Given these differences, there is a case for developing a transparent and coherent framework for funding that recognises the special characteristics of these two parts of the tertiary education system.

Recommendation 3
The Commission recommends private providers be classified using the same system as that used for public providers to ensure that provider classification is coherent across the whole tertiary education system.

Recommendation 4
The Commission recommends that the regulatory framework for the tertiary education system balance the need for a common approach to the regulation and accountability of public and private providers with recognition of the important differences between them. Therefore: a) both public and private provision need to be profiled to promote collaboration and to avoid unnecessary duplication of effort and expense; and b) while funding systems should be transparent and coherent across both public and private sectors, this does not mean that public and private providers should necessarily be funded on the same basis.

Recommendation 5
The Commission recommends that independent research be commissioned on the roles and functions of organisations at present classified as private training establishments (including an examination of the extent to which they are complementary to, or in competition with, public providers), to inform the Commissions future reports.

Trans-national education
As noted earlier, the growth of trans-national education, and the potential contribution it can make to an effective tertiary system, is an emerging issue that must be addressed by any proposed regulatory framework. Trans-national education adds another element to the public/private mix of education services; in this case, from outside New Zealand. Once a trans-national provider starts offering or advertising programmes here, it has, in effect, become part of the New Zealand tertiary education system. The Commission, therefore, believes that trans-national providers seeking to operate in New Zealand should be subject to the same regulatory requirements as other providers within New Zealand, including any changes in requirements that are made as a result of this Report.

Recommendation 6
The Commission recommends that all trans-national providers who wish to provide programmes of learning in New Zealand be subject to the same regulatory requirements as New Zealand providers, including any proposed changes to those requirements as a result of this Report.

3.2.2 National and Local Responsiveness

Complementing the Governments traditional roles of regulation and funding, are the equally important ones of leadership, facilitation and stewardship. As with many other issues the Commission has confronted, the way forward is to find an appropriate balance between the two approaches of either seeking to direct and control or letting a particular issue resolve itself. Building a knowledge society will require a responsive, innovative tertiary education system, one that meets the needs of a multiplicity of stakeholders.

Industry and business

The Commission supports the role of vocational and industry training as a core part of the tertiary education system. Industry and business, therefore, need to have an effective voice in ensuring the system meets their needs and provides graduates with appropriate standards of skills, knowledge and attributes.

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The system must encourage co-operation and collaboration between specific industries and those providers with expertise in curriculum design and assessment methodologies. A dialogue between both parties is essential if the tertiary education system is going to be responsive to national priorities.

Regional spread and location

New Zealand is geographically dispersed and, as a consequence, in order to give learners real choice in how and what they learn, providers need to be situated close to where the people are. It is not sufficient to have one or two providers to serve all New Zealand and to expect learners to travel. Lifelong learning should take place close to where people live, work and socialise. Nor is it sufficient to expect everyone to be successful by learning in an open or distance-learning environment. While these technology-driven learning environments suit some, they are not appropriate for all. Regional tertiary education providers have an important role to play in the development of the regions in which they operate and it is vital this role be protected. There are, of course, a range of methods through which tertiary education opportunities can be provided at a regional and local level.

Te Reo Maori and Tikanga Maori

The Commission affirms that Maori language and culture is at the very heart of our national heritage, and so deserves protection and celebration. As with all languages and cultures, Te Reo Maori and Tikanga Maori have taken many years to develop; but, if these taonga or treasures are not nurtured and protected, they will be lost. Already, several ancient tongues are no longer in existence, and, as a result, the reo (language) spoken today is largely modern Maori. It is essential that we maintain the wonderful diversity that resonates in the mita (dialects), kawa (protocols) and tikanga (customs) of the many hapu and iwi throughout the country. In particular, the Commission believes that New Zealand must celebrate and protect: Maori heritage and its diversity; localised Maori knowledge bases; the uniqueness of Maori within a global context; and the place of Maori within New Zealand itself. In the light of these points, it is essential that the tertiary education system provide for the fostering and preservation of Te Reo Maori and Tikanga Maori.

Pacific peoples
Many Pacific communities over several decades have sought educational opportunities in New Zealand. Their current social position in New Zealand, however, presents the tertiary education system with major challenges. Across the major social and economic indices, Pacific peoples are facing disproportionate levels of negative outcomes. The strengths that exist within Pacific communities cannot be sustained if their educational aspirations are not met and the opportunities for their participation in society are not radically improved. These are challenges that confront the tertiary education system firstly, in relation to informing our identity as a Pacific nation and, secondly, in being informed by the contributions of Pacific peoples. It is therefore equally important that the tertiary education system recognises the contribution, and fosters the participation, of Pacific peoples and their cultures. The tertiary education system must enable effective engagement with Pacific communities and seek ways to ensure it is responsive to the needs of Pacific peoples.

People with disabilities

The Commission believes that access for people with disabilities should be seen as a priority for tertiary education and that a more effective policy framework for people with disabilities should be developed. Moving away from the medical or deficit stereotyping of people with disabilities should be considered as a starting point for removing barriers that many people with disabilities face.

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3.2.3 Excellence in Knowledge Production and Application

Research within the tertiary education system
The Commission acknowledges that the tertiary education system plays a crucial role in achieving a productive and innovative research community. The system must therefore be designed to promote and sustain world-class research capacity and capability, including that of Maori and Pacific peoples. Researchers in the tertiary education system must not only be the leaders in producing fundamental knowledge, but must also be instrumental in disseminating new knowledge to the community and training the research workforce of the future. The latter two roles, in particular, must be undertaken in partnership with the wider research and business communities. Although the Commission will release its major report dealing with funding in the latter part of 2001, it is already clear that there is a need for: greater specialisation and concentration of research activity within the tertiary education system; increased collaboration and co-operation in research across the system, as well as improved linkages between centres and networks of research excellence and other parts of the tertiary education system and with those outside it, so as to bring about knowledge transfer and application; supporting research-led teaching as a prerequisite for degree and post-graduate teaching programmes; all parts of the tertiary education system to be involved in knowledge production and dissemination of research to some extent, even if not all parts of the system have a role at the cutting edge; universities to remain the primary providers of post-graduate education; more emphasis upon the development of a research workforce, including that of Maori and Pacific peoples; and greater investment in research infrastructure. One other point is worth highlighting at this juncture. There is increasing evidence that some institutions are moving to separate research and teaching career pathways. The Commission has some reservations about such moves, primarily because of the greater risks of academic staff not keeping pace with rapid changes in their respective fields of knowledge.

Recommendation 7
The Commission recommends that the central steering structures, in partnership with other government agencies with responsibility for research, ensure that the tertiary education system provides: focused and specialised fundamental and applied research; and genuine commitment to research-led teaching as the basis of all degree and post-graduate education.

Recommendation 8
The Commission recommends the establishment or recognition of national centres or networks of research excellence within the tertiary education system, with linkages to a national strategy and the international research community.

3.2.4 Equitable Access and Recognition of Learning for Life

Learning throughout life
A genuine hunger for improvement in individuals for themselves and the communities in which they live can be a strong impetus for national development. For this to occur, lifelong learning, accessible throughout the country (in both urban and rural areas), is a necessity. Lifelong learners will enter formal education environments at many points in their lives. In between these periods of formal, credentialised learning, their learning experience does not stop. It continues in their workplaces, their homes and in the activities they undertake in their day-to-day lives.

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The system should be able to offer alternative pathways that encourage and foster participation by groups traditionally under-represented in tertiary education. It can do this by making it easier to gain entry, and providing appropriate support for continuing participation. The tertiary education system of the future needs to have these features: lifelong learning pathways and environments that recognise the increasingly iterative and non-hierarchical nature of learning; credit transfer and articulation between learning environments; systems that allow the development of qualifications for learners which incorporate alternative pathways of learning; and recognition of learning through international delivery systems. This has some implications for the shape of the system and its ability to be dynamic and flexible enough to change as new learning environments emerge.

The role of quality-assured learning environments

The Commission is committed to a broad definition of tertiary education, which encompasses the full diversity of learning environments. This does not mean, however, that the Commission believes that all learning should fall within the scope of the tertiary education system. The focus of this Report, rather, is on learning which takes place within a quality-assured environment. Quality-assured learning environments cover learning environments for which an organisation (such as an ITO or an adult and community education organisation) assumes responsibility for the quality of the learning and assessment of outcomes (where relevant), but does not necessarily provide the education and training support for the learning occurring in that environment. This concept covers workplace learning and semistructured community-based learning.

Industry training
Rapid changes in society and the nature of work requires people to retrain and acquire new skills in order to continue operating effectively in the workplace. Changes in technology and workplace organisation are placing pressure on people to continue to learn throughout their working lives. These changes have prompted a review of industry training. The Commission believes that it is essential for this review to be informed by, and inform, the work of the Commission. The aim of the industry training review is to keep what is successful and working well with the industry training strategy and recommend changes that are needed to ensure it continues to meet industrys needs. Along with the industries that have been supportive of the current industry training strategy to date and other workplaces who have established quality-assured learning environments, many professional groups also recognise the value of having recognised programmes linked to work and professional practice. These initiatives contribute to the development of a strong learning culture in which ongoing education and training are seen as an integral part of working life and an essential characteristic of every successful business. The Commission believes that it is essential for the tertiary education system to recognise learning that occurs in quality-assured learning environments in the workplace as part of a continuum of learning in which people move between formal learning environments and the workplace at many times throughout their lives. The system needs to provide pathways that support people to move easily between workplace learning environments and formal learning institutions.

Recommendation 9
The Commission recommends that the review of industry training clarify the role of industry training organisations (ITOs) within the overall tertiary education system as described in this Report.

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Adult and community education

Adult and community education offers a range of educational programmes outside the compulsory school system and the formal processes of large TEIs. As such, it is an integral element of lifelong learning. While it can involve either formal or non-formal learning processes, these are not necessarily formally assessed or certified (although some are quality-assured learning environments). Because it occurs within identifiable communities whether they be a geographic area, a common interest, or whanaungatanga adult and community education is able to respond to regional and community issues such as adult literacy, learning for Maori development, education to support social justice, and English-language programmes for speakers of other languages. Adult and community education happens in a range of environments. These provide a bridge to further learning opportunities and are an important form of educational provision for those who have benefited least from formal education. Adult and community education promotes a culture of lifelong learning, democratic participation, cultural development, and increased control over the future for individuals and communities. For such reasons, mechanisms should be available within the tertiary education system to recognise achievements in this form of learning. These pathways are needed so that people can easily move between quality-assured community learning environments and formal learning institutions. A knowledge society encourages people to continue to learn throughout their lives. Adult and community education is currently being reviewed. The Commission believes it is essential that this review be informed by, and inform, the work of the Commission.

Recommendation 10
The Commission recommends that the review of adult and community education clarify the role of adult and community learning organisations, structures and systems within the overall tertiary education system described in this Report.

E-learning
The Commission has concluded that e-learning is an important mode of learning for the whole tertiary education system. It has also identified that the development and implementation of resources and technologies related to e-learning needs to be managed and co-ordinated in a manner that ensures it adds value to the tertiary education system as a whole, and promotes the effective use of resources.

Recommendation 11
The Commission recommends that the Government fund research on the development of e-learning technology in New Zealand, to assist the whole tertiary education system to capitalise on the potential of information and communications technology for effective delivery of learning.

Recognition of learning
There is a growing demand from both learners and other stakeholders in the tertiary education system to recognise the concept that what is learnt is more important that where it is taught, and to award appropriate credit for learning on this basis. Qualifications are being developed (such as Foundation degrees in England) that give credit for work-based learning and integrate this learning with traditional institution-based learning. Such programmes encourage application of knowledge and ensure graduates are work-ready. The tertiary education system must have mechanisms to recognise award and transfer academic credit for learning gained in non-formal learning environments. This requires a system of recognition that is robust and quality assured, with the ability to recognise the equivalence of qualifications and learning gained from a variety of sources. The system should facilitate the recognition of courses and programmes for articulation and credit transfer and should ensure such processes are easily understood, both by providers but also by learners and other stakeholders involved in the system. This requires the consideration of the role of the current quality assurance bodies, NZQA, CUAP, NZPPC, and CEAC, in a reshaped system and what structures and policies are needed to promote alternative pathways for learning. One possibility is to align the quality-assurance processes more closely with the central policy 23 and funding systems.

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Some of the solutions to the problem of recognising equivalence of degrees, particularly international recognition of polytechnic degrees, have been to make polytechnics into universities. This has happened in many international jurisdictions and has also occurred with the Auckland University of Technology. Another option is to introduce a university entity able to award a university degree to polytechnic degrees that meet its standards. Trans-national learning will bring pressures for a smoother, more transparent, and more coherent system for mutual recognition of qualifications.

3.2.5 Treaty of Waitangi

The Commission suggests that the long-term interests of Maori development require a tertiary education system that is better able to deliver effective outcomes for Maori. This needs to happen at every level of the system, but particularly at the highest levels. To bring this about, more planning is required across the tertiary system with a principled, planned and accountable approach to issues of provision, equitable access, active protection of Te Reo Maori and Tikanga Maori, research, best practices, and educational outcomes.

Treaty of Waitangi obligations

The Treaty provides a symbol of the inclusive society that New Zealanders have sought and continue to seek to build. It provides a model for a partnership society, where the individual and collective rights of selfdetermination are balanced with the need to govern for the common good, but where the basic and equal human rights of all are assured. This model forms the basis for enumerating the Treaty obligations of all stakeholders within the tertiary education system. Accordingly, full and unimpeded Maori participation both as self-determining Treaty partners and as equally engaged citizens is paramount. In dealing specifically with meeting its obligations under the Treaty of Waitangi, the tertiary education system must operate in a manner consistent with the five generally recognised Treaty policy principles. 38 These principles are described (briefly) below: The Kawanatanga Principle (Government Principle) is based on Article 1 of the Treaty and recognises the right and the solemn obligation39 of the Crown to govern and to make laws for the common good. The Tino Rangatiratanga Principle (self determination) is based on Article 2 of the Treaty and guarantees to Maori their rangatiratanga over all they possess for as long as they wish to retain it.40 It recognises the right of iwi to manage their own affairs. It affirms the rights of Maori to development in the widest sense. The Partnership Principle refers to the notion of good faith and is based on the Treaty as a whole as signed between Maori and the Crown. The partnership principle involves developing a greater sense of mutuality between the partners.41 The Protection Principle refers to the sense of active protection for Matauranga Maori, Te Reo Maori and Tikanga Maori and other taonga or treasures of the ancestors that have been handed down to, and augmented by, successive generations. Within this principle is also a principle of redress.42 The Participation Principle refers to the rights of citizenship and equality.43 In education, generally, this principle means such things as the right to equitable access and educational opportunity. For Maori to develop fully, there must be proper recognition of Maori aspirations in establishing organisational types that meet their needs. As such, the Commission recognises and affirms the benefits of wananga and suggests that there may well be new organisational types, including alliances, centres and networks of excellence and quality-assurance entities that will enable Maori to develop in the future.

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39 40 41 42 43

These ubiquitous principles have been utilised, analysed, and interpreted in various published sources over the previous decade. See, for example: Bishop and Graham (1997); Crengle (1993); Durie (1998); and Kawharu (1989). See New Zealand Maori Council v Attorney General, (1987), p 517. See Waitangi Tribunal (1999). New Zealand Maori Council v Attorney General (1995) Privy Council. New Zealand Maori Council v Attorney General (1987) Court of Appeal. New Zealand Maori Council v Attorney General (1987) Court of Appeal.

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The Commission suggests that the tertiary education system, and its central structures, should have a leading role to play in enabling Maori to participate successfully in the knowledge society and economy. This is particularly relevant in terms of the desired level of engagement of Maori within the area of governance in the tertiary education system. Therefore, there must be meaningful mechanisms for consulting and working with Maori. It is important that Maori achieve at the highest levels of tertiary education. In recent years, there has been an important emphasis on the provision of enabling or second-chance education and employment-related programmes for Maori. But for the long term, there must be a commitment to ensure much higher levels of achievement in advanced-level programmes. This will require action to remove existing institutional barriers and constraints44. The Commissions view is that an accountable approach to the Treaty will require transparency about and within the system. Crucial in this respect must be the implementation of appropriate performance measures at both the provider and system-wide level.

Recommendation 12
The Commission recommends that the following be put in place, in order for Maori to participate fully in the tertiary education system and raise their level of achievement: support for types of tertiary education providers who are capable of meeting the needs of Maori; meaningful mechanisms for enabling Maori participation in governance and decision making; and systems for measuring the performance of providers and the wider tertiary education system in meeting Treaty of Waitangi obligations.

3.3: The Approach to Shaping the System

In light of the preceding discussion on the broad objectives for the tertiary education system, there is clearly a need to develop improved structures and instruments. One of the measures the Commission will recommend is the introduction of a detailed tertiary education strategy to provide a focus for change in the tertiary education system. Taken together, the strategy, the policy instruments, and the central structures make up a steering framework to be used for shaping the system so that it is responsive to the needs of a knowledge society.

3.3.1 International Examples

Governments around the world use many different approaches and a wide range of policy instruments to steer their tertiary education systems and to minimise undesirable competition, avoid inefficient duplication of services, encourage specialisation, or achieve related objectives. Some of these approaches have been: limiting the number and/or location of particular types of providers (especially the number of universities); imposing relatively rigid distinctions between providers of different types (for example, in terms of the level and/or kind of educational programmes which they are permitted to offer); making it difficult, if not impossible, for providers to change their designated type (or to merge with other providers); limiting the types of tertiary education providers who are eligible to receive public funding for educational purposes; limiting the types of tertiary education providers who are eligible to receive public funding for research purposes; controlling and limiting the availability of public funding for capital expenditure (especially investments in expensive infrastructure); and limiting the number of publicly funded student places whether at the aggregate (system) level, the provider level, or the level of the particular discipline.45
44 45

This is supported by research undertaken by Jeffries (1997), and also by a number of submissions made to the Commission. At a broad conceptual level, measures of this kind can be regarded as potential elements of a system of educational profiling. Each measure supplies a possible means by which the Government (or the appropriate regulatory/funding agency or agencies) can attempt to shape the distinctive purpose and mission of each tertiary education provider, and so influence the nature of the educational (and/or research) services they supply. From a survey of the regulatory arrangements in other jurisdictions, it appears that only one country (Australia) employs a policy instrument within the tertiary sector specifically referred to as an educational profile. But if the terminology is restricted to Australia, the broad concept of profiling most certainly is not. Indeed, the countries for which the Commission has information all employ a profiling regime to one degree or another. 25

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While the Commission has carefully considered various international examples that it examined, the framework and instruments proposed in this Report have been designed to meet, and respond to, the particular circumstances and challenges facing the New Zealand tertiary education system.

3.4: An Integrated Approach

The Commission has developed an integrated approach to the development and application of its tertiary education strategy and steering framework. This integrated approach is a combination of three concepts or methodologies: a systems approach, a partnership approach, and management by exception.

3.4.1 A Systems Approach

A systems approach46 recognises the reciprocal and causal relationship between the parts and the whole; and that the resulting inter-relationships need to be considered when making decisions that affect either the whole or some of the parts of the tertiary education system. Many of the problems that currently exist within tertiary education are a result of component thinking which sees only the component parts of the system without considering their inter-dependencies. A systems approach recognises that the tertiary education system is more than a collection of TEIs, PTEs, ITOs and other providers. The system is also defined by the inter-relationships of these providers with one another and, just as importantly, with the wider community, industry, business and the research community. A systems approach, when applied to the tertiary education system, means that any planning and decision making must take into account the whole system as well as its parts.

3.4.2 A Partnership Approach

Government intervention in the tertiary education system should be intelligent intervention that uses knowledge from within the government system; but it should also be carried out in partnership with providers, other stakeholders, and other bodies or individuals who have essential knowledge about particular issues. There is a need to find an appropriate balance between heavy-handed government approaches that seek to direct and control and more light-handed ones that leave a particular issue to resolve itself. A more explicit partnership by the Government with providers and other stakeholders has the potential to produce a more supervisory but co-operative approach to steering the tertiary education system. Under this partnership approach, the state has a modest regulatory role and is largely concerned with ensuring that the system is properly co-ordinated and that adequate quality standards are maintained. The approach is also consistent with a relatively high level of institutional autonomy and self-regulation. Considerable emphasis is placed on the promotion of best practice and upon transparent processes to encourage the sharing of ideas and innovations.

3.4.3 Management by Exception

In the past, there has been a tendency to seek to either manage the whole of an activity in an exhaustive manner or give up altogether. A more consultative approach to steering the system will allow adoption of the principle of management by exception.47 This principle does not seek to manage all activities, but has the ability to deal with difficulties and respond to challenges to the system as a whole. External intervention or action is, therefore, focused on dealing with problems in a particular case, or with new challenges to the system as a whole. Combining management by exception with a systems approach means that any exceptions to the rule are considered in terms of what impact changes in policy or treatment will have not merely on individual providers but on the system as a whole.
46 47

For detailed information on systems-approach theory see: Grobstein ( 1995); Sauter (2000) Management by exception is based upon the premise that most things will work if the system is well set up, in a manner that includes processes for correcting problems.

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3.5: The Tertiary Education Strategy

The Commission is working towards specifying a fully developed tertiary education strategy and that will be the focus of its next two reports. Here, the Commission uses its five broad objectives, along with the integrated approach described previously, to determine a high-level tertiary education strategy. The first element of the strategy is instituting a systems approach to policy and regulation for the whole tertiary education system, which recognises the distinctive roles of the diverse parts of the system. This means that policy and regulation must reflect the distinctive roles of the various parts of the system, but in ways that integrate them into a comprehensive and coherent overall system. The second element is improving the proactive steering by the Government, the tertiary education system, and other stakeholders of the tertiary education system, in a manner that is responsive to local needs and priorities. This will mean maintaining a healthy tension between the two important needs of central steering and institutional autonomy; it will also mean maintaining a balance between light- and heavy-handed approaches to the central steering of the tertiary education system. The third element is encouraging greater specialisation and concentration of activities by providers to promote excellence. Greater specialisation allows the special role and character of providers to be recognised, so that they can better meet the diverse and distinctive needs of their learners and other stakeholders. The fourth element is the facilitating of greater linkages to bring about improved access to the tertiary education system and to make it more efficient. Linkages allow providers to build on their distinctive characteristics and identify their role in relation to others. This is important when considering the tertiary education system as a whole and how each individual provider contributes to it. The fifth and final element is facilitating a partnership approach to meeting the needs of Maori and fulfilling the principles of the Treaty of Waitangi. It is clear from the discussion in Chapter 2 of the tertiary education systems current problems that implementing the strategy will require modifications to the design and use of existing policy instruments, as well as the introduction of some additional instruments. The Commission believes that the changes proposed in this Report are by no means radical; nor are they particularly novel. It should also be emphasised that they are consistent with the partnership approach described previously and do not mean the imposition of a centralised, heavy-handed regulatory regime of the kind still found in some European jurisdictions, such as Germany.48

Recommendation 13
The Commission recommends that, to achieve the broad objectives identified in this Report, the following elements be recognised as an essential part of a high-level tertiary education strategy: a comprehensive and coherent approach to policy and regulation for the entire tertiary education system, which recognises the distinctive roles of the diverse parts of the system; proactive steering of the tertiary education system, in a way that engages stakeholders and is also responsive to national and local needs; greater specialisation and concentration to promote excellence; better linkages to improve issues relating to access, recognition, and efficiency; and partnership in the delivery of education for Maori.

Recommendation 14
The Commission recommends that the following be put in place, to achieve its proposed tertiary education strategy: an improved framework for the steering of the tertiary education system; and improved central structures and capability to manage the steering framework.
48

See Frackmann and de Weert (1994).

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Chapter 4: The Steering Framework

The Commission believes that the deficiencies in existing policy tools and the central steering structures discussed in the previous two chapters are of such magnitude that a new, and more comprehensive, approach is required. The purpose of this chapter is to give a brief description of each of the steering instruments the Commission is proposing, as well as the type of central steering structure that the Commission believes is necessary. The various broad options for steering instruments are discussed first, followed by a range of options for the central structure. Detailed discussion of the Commissions preferred option for a central steering structure occurs in Chapter 5, while the specific details about the design and use of the new and improved steering instruments are described in Chapter 6.

4.1: Options for Improved Steering Instruments

In considering how to improve the overall management of the tertiary education system, the Commission has considered four broad options: 1. A more active use of the Governments existing policy instruments. 2. Legislative changes to strengthen the existing policy instruments. 3. The introduction of new policy mechanisms, such as a requirement for tertiary education providers to produce annual detailed descriptions of their distinctive character, activities and plans (that is, their profile). 4. An integrated package of measures from options 1-3. The Commissions preferred approach is to adopt option 4: an integrated package involving some new instruments but also making better use of existing steering instruments. This package consists of: a new system for the classification of the roles and functions within the tertiary education system functional classification; a requirement for all publicly-funded providers to negotiate a charter that reflects not only the providers role but also its place within the system as a whole; the introduction of annual profiles for all recognised tertiary education providers, whether or not they are publicly funded; modifications to the current administrative structures at the central government level; modifications to some aspects of current governance, monitoring and accountability arrangements; and modifications to the current arrangements for funding tertiary education providers. In this Report, the focus is on the necessary instruments, mechanisms, and central structures for, firstly, more effective steering of the tertiary education system by the Government and, secondly, for the allocation of funding. More detailed advice on funding and governance issues will be included in the Commissions future reports. And so only brief comments and suggestions are made in this Report on these matters.

4.1.1 Functional Classification

The range of existing methods for classifying or categorising providers differentiation by type, legal form and protected term do not provide a sufficiently precise means of differentiating between the different roles and functions of providers within the tertiary education system. The Commission is, therefore, proposing that in addition to the existing means of defining providers mentioned above that a coherent system of functional classification also be used as a basis for negotiating charters, profiles and funding. This scheme, which the Commission calls functional classification, focuses on the activities carried out by providers rather than on their organisational form or name.

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Functional classifications provide a means of categorising providers explicitly in order to describe their activities and special characteristics. The purpose of this is to determine the inter-relationships between the parts and the whole of the tertiary education system, and to assist in the process of determining funding allocations. Functional classifications would enable providers to delineate clearly their special role and character and, therefore, foster the greater specialisation and concentration of activities needed to promote excellence in learning and research. The Commission envisages functional classifications being used by the central steering body when it negotiates charters and profiles with the diverse range of providers within the tertiary education system. As discussed in Chapter 6 of this Report, the Commission proposes that the form and content of charters and profiles would vary depending upon the functional classification(s) of the provider concerned. Other regulatory and funding distinctions could also be made using the system of functional classifications. This would address concerns raised by a number of submissions over the one-size-fits-all approach to the management and regulation of the tertiary education system during the last decade.

Recommendation 15
The Commission recommends that all providers and quality-assured learning environments be classified by: a) the functional classification of the activities undertaken; and b) the legal form of the provider or body responsible for the quality assurance of the learning environment; and c) the protected term used to describe the provider (where relevant).

Recommendation 16
The Commission recommends that, for the purposes of describing their special character and function, providers and all quality-assured learning environments be classified in a manner that reflects their functions and activities.

4.1.2 Charters
In Shaping a Shared Vision, the Commission stated in Conclusion 11 that all publicly funded providers should be required to produce an agreed statement of their distinctive mission and contribution to the tertiary education system as a whole. Charters, in their current form, provide an important steering mechanism that balances responsiveness and autonomy. There are, however, four fundamental problems with the current charter requirements that need to be addressed. Firstly, they apply only to TEIs. Second, there are no established guidelines for their preparation. Therefore, a systematic approach to developing charters is required. The Tertiary Advisory Monitoring Unit (TAMU) of the Ministry of Education believes that many charters fall on the side of generality rather than imparting firm and meaningful commitments to specified outcomes and principles of operation. Third, they contain inadequate information. The scope of charter requirements will need to be extended to encompass the elements of the tertiary education strategy given in Recommendation 13. In particular, charters should include information on how providers will reinforce linkages and meet national and local priorities. The charter requirements of providers must also demonstrate the ways in which they will avoid negative thirdparty effects.

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Finally, the Commission believes that the current processes for ensuring that institutions are accountable for the commitments in their charter are not reliable and consistent. There are two possible solutions here: either directly monitoring the compliance of providers against their charters; or monitoring a document that is based upon and consistent with the charter. The Commission considers that the latter approach is more practical. With these modifications, the Commission regards the current charter requirements as being generally appropriate for all publicly funded providers. The Commission regards charters as a vital element of its proposed steering framework, and, therefore, believes they should apply to all TEIs, PTEs, GTEs (government training establishments), and OTEPs (other tertiary education providers) that receive public funding. Charters would, therefore, become the mechanism by which non-TEIs became eligible for public funding. Quality-assured non-TEIs could continue to provide approved programmes and qualifications without charters, but would not be able to seek public funding for these programmes.

Recommendation 17
The Commission recommends that all non-TEI providers who wish to receive public funding be required to negotiate and agree a charter with the Minister, on the advice of the TEC.

Purpose of charters
The Commission believes that charters should be used as medium-to-long-term strategic documents, covering a period of five-to-ten years and should articulate an organisational vision, mission and goals in a manner consistent with this timeframe. The Commission proposes that charters continue to be documents setting out the providers high-level goals and approach to achieving them, rather than providing detail on the specific activities: that function will be performed by profiles (see the next section). Charters will describe the distinctive characteristics of a provider and how these are expected to change and develop in response to any changes in their operating environment and to changing stakeholder needs. Charters will also require providers to specify how they contribute to the tertiary education strategy and work within the tertiary education system as a whole.

Recommendation 18
The Commission recommends that charters describe the broad mission and activities of each provider, with a focus on the medium-to-long term (5-10 years).

4.1.3 Profiles
Purpose of profiles
The purpose of profiles is three-fold. First, they are designed to provide a comprehensive information base on the range of provision and activities within the tertiary education system. Second, they will provide the basis upon which action can be taken to steer activities as part of the overall strategy and objectives for the tertiary education system. Third, they will provide the basis for monitoring and determining the accountability of providers. A systems approach to making decisions about a providers contribution to the system requires information about the full range of provision. The Commission, therefore, recommends that profiles apply to all qualityassured tertiary education providers, whether or not they are eligible for public funding. The content of profiles for non-publicly funded providers will differ from that of funded providers, but will provide a consistent information base for strategic planning and decision making in the tertiary education system. The Commission also intends that profiles incorporate some existing reporting requirements, such as those contained in statements of service performance.

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Profiles will complement charters. They will specify (in greater detail than a charter) the providers proposed activities including the distinctive mission and character of the provider, and the nature and level of the educational programmes that the provider plans to offer over a three-year period. The profile will be negotiated each year, on a rolling-triennial basis. A rolling-triennial approach will promote longer-term planning, reduce compliance costs and enhance predictability within the system; it will also encourage responsiveness on the part of providers. Profiles will form the basis for the monitoring of provider performance. This will be relevant to publicly funded and non-funded providers. Profiles will also form an important part of the quality-assurance process, as they will provide a clear and public statement of a providers proposed activities. For this reason, both charters and profiles should be open to public scrutiny.

Recommendation 19
The Commission recommends that each quality-assured tertiary education provider be required to negotiate a profile on a rolling-triennial basis.

Recommendation 20
The Commission recommends that a profile provide information on the providers distinctive mission and the nature and level of the programmes and activities that the provider plans to offer over a three-year timeframe.

Recommendation 21
The Commission recommends that finalised profiles be public documents.

Form of profiles
The Commission believes that profiles should: be consistent with the providers classification (including functional classification, legal form and relevant protected terms); identify the distinctive characteristics and mission of the provider; contain information on educational and research activities of a kind and quality that will enable the TEC to operate the tertiary education system in an effective manner, while keeping compliance costs to a minimum; build upon existing reporting requirements, in particular statements of objectives; and reflect the fact that they apply to all quality-assured tertiary education providers, whether or not the provider receives public funding. In the case of publicly funded providers, profiles should reflect and be consistent with the providers charter.

4.2: Options for Central Structures

The Commissions approach to the central steering of the tertiary education system has two key strands: it should be based on a partnership between government, providers, industry, the community, and other stakeholders; and it should incorporate the systems approach. As well, any central steering body should be capable of implementing the core elements of the Commissions strategy. It is also important, given the increased steering capability being proposed, that the central structures of the tertiary education system are organised to ensure that the Commissions key principles49 for example, autonomy, responsiveness and academic freedom are preserved and enhanced.
49

See Appendix 1.

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4.2.1 The Status Quo

The Commission does not believe that the status quo in terms of central structures50 is an option if the tertiary education strategy is to be successfully implemented and the broad objectives for the system achieved. There are four reasons for this. 1. Implementing the recommended changes to the regulatory framework, through the current administrative structure, would overemphasise national compared with local needs and could seriously erode institutional autonomy. 2. The Commission believes that the current problems with the tertiary education system identified in Chapter 2 are unlikely to be addressed effectively if the status quo remains in place. Without considerable change, the current administrative arrangements do not have the capacity to steer the tertiary education system proactively or secure the engagement of stakeholders in that process. These problems are structural rather than performance related. 3. The status quo is not consistent with the Commissions integrated approach; it does not easily provide either a systems approach or a partnership approach to planning, policy development and decision making. 4. Given the views contained in many submissions received by the Commission, the status quo arrangements would not be perceived as a credible mechanism for implementing the steering framework proposed by the Commission.

4.2.2 International Experience

In considering the design of new central structures, the Commission gave in-depth consideration to international models of intermediary bodies,51 particularly the experience of countries of a similar size to New Zealand or with similar cultural, social or economic affinities.52 In the many overseas examples where Governments have pursued a more active engagement with tertiary education providers, it has been common for the authorities to establish an intermediary body at arms-length from the Government. It is the responsibility of the intermediary body, rather than a government department or ministry, to consult and engage with providers and other stakeholders, to negotiate with providers over their respective educational and research roles, and to determine the allocation of public funds. Currently, there are intermediary bodies operating in a number of countries (whether at a national or subnational level). These include Canada (for example, Manitoba and Nova Scotia), Hong Kong, India, Ireland, Israel, Kenya, Nigeria, Norway, South Africa, the United Kingdom, and the United States (for example, California). Two recent reviews of intermediary bodies in the United Kingdom have endorsed both their role and their effectiveness. The Dearing Report stated: The independence, responsiveness and effectiveness of UK higher education institutions owes much to the well-established tradition of government distancing itself from institutions and entrusting the high-level administration of the public financing to independent bodies of standing.53 More recently (March 1999), the Department for Education and Employment reviewed the Higher Education Funding Council for England (HEFCE). After reviewing a range of available options for delivering the British Governments policies for higher education, and evaluating these against the criteria of improved effectiveness, value for money and practicality, the Department concluded that the current arrangements, whereby HEFCE operates at arms-length from the Government, should continue.
50

51 52 53

The central steering bodies in the current system are the Ministry of Education, Skill New Zealand, New Zealand Qualifications Authority, and the New Zealand Vice Chancellors Committee. See Mosely (2000). See Bjarnason (1998); Goedegebuure et al. (1993). Report of the National Committee of Inquiry into Higher Education(1997) s 22.10.

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It further concluded: The option of abolishing the HEFCE and arranging for its functions to be exercised by the Secretary of State through his officials within the Department of Education and Employment was ruled out on the grounds that the original case for a buffer body still stands, namely the need to avoid political involvement in decisions on allocations to autonomous institutions which might involve issues of academic autonomy.54

4.2.3 Integrated or Multiple Central Structures

Given the Commissions belief that the status quo is not a realistic option, a further key issue is whether the steering of the system should be done by a number of central bodies or structures, or just one. The Commission believes that a single integrated central structure will better achieve the desired differentiation and complementarity within the tertiary education system. This is because its scope of coverage enables it to steer all forms of provision. In addition, a single entity will have the potential to promote greater access to learning throughout life, and to promote improved portability of learning through a more coherent system. Therefore, the Commissions preference is for a single central agency to manage the steering of the whole tertiary education system. This is consistent with the Commissions tertiary education strategy and its integrated approach including the broad definition of tertiary education reached in Shaping a Shared Vision. This central body will need to be organised so that it recognises the distinctive roles of the diverse parts of the system, balances the need for national and local responsiveness, and produces proactive steering of the system.

Recommendation 22
The Commission recommends that there be a single comprehensive central steering body for the whole tertiary education system. The reasons for an integrated body, the options available, its range of responsibilities and functions, and how it will operate are discussed in more detail in the next chapter.

54

Department for Education and Employment (1999) p. 4.

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Chapter 5: The Tertiary Education Commission

The second element of the high-level strategy for the tertiary education system is the proactive steering of the tertiary education system in a manner that engages stakeholders and balances both national and local responsiveness. The Commission believes this element is best met by the introduction of an intermediary body that is a comprehensive and coherent central structure for the whole tertiary education system. This structure will also be vital in fulfilling the fifth element of the high-level strategy facilitating partnership in the delivery of education for Maori and others in the community. In this chapter, the Commission considers various options available for establishing a single central steering structure. Having chosen an option, the structure and function of this body is discussed in detail. Details of how the body will use the proposed steering instruments to guide the tertiary education system are covered in Chapter 8.

5.1: Specific Options

The Commission gave serious consideration to four structural options for the TEC. These were: 1. Expanding the role of the Ministry of Education. 2. Establishing a Ministry of Tertiary Education. 3. Expanding the role of Skill New Zealand. 4. Establishing a new intermediary body. Two of the options are based upon departments/ministries, and two are based upon Crown entities. Similarly, two of the options adapt existing agencies, while the other two involve the establishment of new agencies. Plainly, there are other options that could be considered such as expanding the role of the New Zealand Qualifications Authority (NZQA). The Commission has not considered the option of expanding the role of NZQA because it believes that it is important to separate quality-assurance activities from the decision making involved in allocating funding. The Commission believes that decisions in relation to allocating funding within the tertiary education system should have two separate steps: a desirability step and a quality step. To reinforce this approach, the Commission believes that the bodies responsible for quality assurance of tertiary education providers should remain separated from bodies regulating and funding the activities of those providers. This type of separation reduces the risk of poor-quality programmes being funded because they are considered to be desirable. Conversely, it enables funders to choose not to fund programmes that meet quality standards but which are not considered desirable. The Commission, therefore, believes that the options evaluated here are the ones that are most likely to provide a workable solution for the tertiary education system. Implementing any of these options will inevitably have transition costs and implications for existing agencies. It is the Commissions view that none of the options will necessarily incur greater administrative costs than the status quo. Indeed, they could result in a reduced overall cost because of the increased efficiency of operating a single comprehensive central structure for the whole tertiary education system. Any of these options will inevitably take time to implement. In the Commissions view, this does not mean that change cannot begin until the new structures are fully established. It is possible to avoid undue delays in implementing the changes proposed in this Report by putting in place the transitional arrangements set out in Chapter 10.

5.1.1 Evaluating the Options

To determine the best approach to take, the four options were evaluated on their ability to deliver the elements of the tertiary education strategy described in section 3.5. To make the evaluation less cumbersome and easier to follow, the core elements were collapsed into four evaluative criteria:

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a systems approach to policy and regulation that balances the need for national and local responsiveness (reflects elements 1 and 2); a recognition of the distinctive roles of the diverse parts of the system and the linkages between them (reflects elements 1,3 and 4); a facilitation of a proactive approach to the steering of the system which engages stakeholder and provider participation (reflects element 2); a facilitation of partnership in the delivery of education to Maori (reflects element 5).

Option 1. Expand the role of the Ministry of Education

Under this option, the Ministry of Education would be expanded to incorporate the activities of Skill New Zealand and TEAC. The Ministry would be the body responsible for advising the Government on policy for tertiary education, advising the Minister on specific decisions relating to the steering framework, and managing the operational aspects of the funding and regulation of providers and ITOs. A systems approach to policy and regulation that balances the need for national and local responsiveness This option could improve the comprehensiveness and coherence of policy and regulation for the tertiary education system. It would also allow linkages between tertiary education policy and regulation, and broader education policy. Placing responsibility for the steering of the system with the Ministry of Education would enhance the ability of the Minister to intervene. This could, however, reduce the stability of the system over time, as changes in political objectives and imperatives could impact negatively on the system. The increased steering capability provided by the proposed steering framework could undermine responsiveness to local needs unless the centralised structures provided a measure of balance. The Ministry of Education as a government department does not have the structural form to provide this form of moderation. There are potential risks to provider autonomy with the increased powers associated with the steering framework. Allocating responsibility for the operation of these powers to the Ministry of Education exacerbates rather than ameliorates this risk. The good stewardship of public money could be enhanced by this option. On the other hand, predictability of funding could be undermined by this option, given the potential for shifts in allocations on a political basis. Recognise the distinctive roles of the diverse parts of the system and the linkages between them The Ministry of Educations breadth of responsibility (covering the entire education system), combined with the nature, scope and complexity of the issues facing the school and early childhood education systems, would make it difficult for the Ministry to give the distinctive needs and problems of the tertiary education system the attention they require. The balance between co-operation and competition within the system may be difficult to achieve under this option, as the central structure would not inherently contain a mechanism for fostering this balance. Facilitate a proactive approach to the steering of the system which engages stakeholder and provider participation Responsiveness could be undermined by this option, as there would be fewer mechanisms to moderate the application of the steering framework. The Ministry of Education, as a government department, is not well suited to engaging stakeholder and provider participation in steering the system. Departments are designed to respond to the needs of the Government and Ministers rather than facilitate input from a range of groups. The accountability of providers to the Crown could be enhanced by this option. Accountability to other stakeholders could be diminished. It is unlikely that the requisite level of buy-in for the successful implementation of the proposed tertiary education strategy could be obtained if the steering framework were operated by the Ministry of Education.

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Facilitate partnership in the delivery of education to Maori The Ministry of Education has staff focused on meeting the obligations of the Treaty of Waitangi, but processes for facilitating effective partnership have yet to be fully developed. The Commissions conclusion in respect of Option 1 is that it would not avert the significant potential threats to institutional autonomy. Nor would it provide the requisite engagement with stakeholders and providers to achieve the tertiary education strategy. The Ministry of Education performs many of the operational functions for schools, and the detailed work required for this means that much of its focus is on the school system. This is a different focus than would be required for the TEC.

Option 2. Establish a Ministry of Tertiary Education

Under this approach, a new Ministry of Tertiary Education would acquire the Ministry of Educations responsibilities for the tertiary education system. It would also take over the roles and functions of Skill New Zealand and TEAC, and possibly other agencies such as Career Services. The major difference between this option and Option 1 is that a Ministry of Tertiary Education would focus exclusively on the tertiary education system, rather than the whole of education. The majority of the points identified in relation to Option 1 apply to this option. The key differences are: A systems approach to policy and regulation that balances the need for national and local responsiveness This option would undermine the over-arching policy co-ordination and integration role currently performed by the Ministry of Education for all education policy and regulation. On the other hand, it would reduce the span of activities for which the central structure would be responsible; this might improve coherence within tertiary education policy and regulation. Recognise the distinctive roles of the diverse parts of the system and the linkages between them This option would provide a better focus on the needs of the tertiary education system than Option 1. Given the considerable problems and challenges facing the system, and the need to implement a new set of steering systems, this option would achieve this aspect of the strategy more effectively. The maintenance of research capability could be enhanced by this option. A Ministry of Tertiary Education could be given responsibility for integrating research in tertiary education with that of other research sectors. This might be easier to do with a Ministry of Tertiary Education as it has a narrower and more specialist focus that the Ministry of Education. This smaller span of control allows new areas of responsibility to be added. The Commissions conclusion in respect of Option 2 is that, much as with Option 1, difficulties with regard to institutional autonomy and stakeholder engagement would not be resolved. In addition, while this option would improve focus on the tertiary education system, it would undermine policy co-ordination and integration for education policy overall.

Option 3. Expand the role of Skill New Zealand

This option would involve the retention of the Ministry of Education as the agency with overall responsibility for tertiary education, but would expand the role of Skill New Zealand possibly renamed Tertiary Education New Zealand. This re-constituted agency would take over the tertiary resourcing responsibilities of the Ministry of Education. Under this model, TEAC could be retained as an advisory body or merged with the expanded body. A systems approach to policy and regulation that balances the need for national and local responsiveness Skill New Zealand has had a focus on only one part of the tertiary education system and one mode of operation. Although this responsibility could be expanded, this would involve a considerable degree of institutional and operational change.

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Skill New Zealands existing approach to the management of funding would conflict with the integrated approach recommended in this Report, especially in respect to management by exception and the partnership approach the Commission proposes for the negotiation and use of profiles. Again, considerable change would be required. Recognise the distinctive roles of the diverse parts of the system and the linkages between them Skill New Zealand has not been established with the full range of roles and functions of the tertiary education system in mind. For this option to be effective, considerable change would be required to the structure, operation and governance of the agency. Facilitate a proactive approach to the steering of the system which engages stakeholder and provider participation Skill New Zealand, as a Crown entity with its own board, has the potential to facilitate a proactive approach, although its operational focus would require considerable change to enable this to happen. If the changes discussed above were implemented, it is possible that this option could produce a proactive approach to steering the tertiary education system but, as noted, the changes required would be substantial. Skill New Zealand processes for contracting providers vary greatly from the processes used to determine EFTS-based funding. This would mean making significant changes to existing processes. Facilitate partnership in the delivery of education to Maori Skill New Zealand is focused on meeting the obligations of the Treaty of Waitangi and processes for facilitating effective partnership are well developed. The Commissions conclusion in respect of Option 3 is that it does, in theory, offer the potential for avoiding additional pressures on institutional autonomy and could facilitate provider and stakeholder engagement. Significant changes to the structure and way of operating would, however, be required to realise this potential. This change would be difficult to accomplish without considerable support from within the tertiary education system.

Option 4. Establish a new intermediary body

The final option considered by the Commission is the establishment of a new body that would carry out the activities of the tertiary education resourcing and tertiary advisory monitoring units within the Ministry of Education, all of the activities of Skill New Zealand, and the strategic policy advice function of TEAC. A systems approach to policy and regulation that balances the need for national and local responsiveness This option would both improve the coherence of the approach to tertiary education policy and improve its comprehensiveness. Bringing together primary responsibility for tertiary education policy and the allocation of funding for all parts of the system would enhance coherence. International experience suggests that intermediary bodies can, if properly constituted and resourced, play a crucial role in building a vibrant, innovative, efficient, high-quality tertiary education system. The Ministry of Education would need to maintain a policy capacity in the tertiary area, thus duplicating (at least in part) the work of a new intermediary body. On the other hand, this would provide for contestable advice from two different perspectives. This option could reduce policy coherency, but the extent to which this would happen would be dependent on the relationship between the intermediary body and the Ministry of Education and the roles and functions of each body. An intermediary body, with a significant element of input from stakeholders outside the tertiary education system, has the potential to provide a mechanism for balancing local and national responsiveness. An intermediary body would stand between the Government and tertiary providers, thereby helping to ensure an appropriate level of autonomy and academic freedom. At the same time, it would allow a more co-ordinated and coherent approach to the allocation of public funds, which would improve predictability, accountability, and the good stewardship of resources.

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Recognise the distinctive roles of the diverse parts of the system and the linkages between them By instituting an agency with a primary focus on tertiary education issues, the opportunity would be created to build an organisation with a detailed understanding of the tertiary education system and capable of providing high-quality, independent advice to the Government. Such a body is likely to make the task of implementing a central steering framework of the kind proposed more acceptable to tertiary education providers. Facilitate a proactive approach to the steering of the system which engages stakeholder and provider participation A new intermediary body with its own board has the potential to facilitate a pro-active approach, and could be established with this orientation in mind. An intermediary body would be a body with an appropriate level of independence from the Government. It would be able to engage and facilitate input from providers and other stakeholders, which would enable a partnership approach to policy development and decision making. Such a body would provide the opportunity for building a constructive dialogue and partnership with those both inside and outside of the tertiary education system. It would also allow some of those with high-level expertise in tertiary education to serve on the governing board and so contribute more fully to policy development and implementation. Facilitate partnership in the delivery of education to Maori Such a body could also provide the vehicle for an improved approach to responding to the imperatives of the Treaty of Waitangi, including building a stronger partnership with Maori in the steering and delivery of tertiary education. The Commissions conclusion in respect of Option 4 is that it is well suited to mitigating additional pressures on institutional autonomy, while still bringing about provider and stakeholder engagement. The converse of this, however, is that the Minister of Educations powers and freedom to manoeuvre in relation to tertiary education will necessarily be constrained. Options 1 and 3 point to the difficulty of achieving the Commissions objectives without substantial change to the existing central structures. Attempts to adapt existing structures are not likely to achieve the objectives sought. Neither of these options is likely to secure the engagement of providers and other stakeholders, and there are risks (of different sorts) to institutional autonomy in respect of these two options. Option 2 results in significant change, but does not address the need to facilitate engagement by providers and other stakeholders, is not likely to be sufficiently proactive, and will not adequately protect academic freedom. Option 4 is the option most likely to allow the Government to increase its engagement with the tertiary education system, while respecting the principle of autonomy and retaining flexibility in the system. This is consistent with Conclusion 8 in Shaping a Shared Vision. On balance, the Commission has decided that the best option for the effective central steering of the tertiary education system is the establishment of a new intermediary body for the whole tertiary education system. The Commission suggests that this body should be known as the Tertiary Education Commission.

Recommendation 23
The Commission recommends that a new intermediary body, to be known as the Tertiary Education Commission (TEC), be established with responsibility for the whole tertiary education system.

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5.2: Structure and Function of the Tertiary Education Commission

The formation of the TEC raises two other important sets of issues: What functions and powers should the TEC have? How should the TEC be structured and organised? In addressing these questions of institutional design, the Commission has drawn heavily on a review it commissioned of the international experience of intermediary bodies.55 This review highlights the considerable variation in the functions, powers and governance of intermediary bodies between those with limited statutory responsibilities and those with comprehensive powers (and, therefore, a significant ability to steer the tertiary education system). While there are valuable lessons to be learned from the experience of other countries, it is important to appreciate the unique political, administrative, economic and cultural contexts in which each particular intermediary body operates. There are also valuable lessons to be drawn from the history of New Zealands institutional arrangements for managing the tertiary education system, including the experience of the University Grants Committee (196190)56 and Skill New Zealand. The Commission has carefully considered all of these issues in its deliberations on the aims, functions, and structure of the TEC.

5.2.1 Aims and Purposes

The TECs central and overriding aim is to steer the tertiary education system in a manner that is consistent with the tertiary education strategy and that achieves the broad objectives set out in this Report.

Recommendation 24
The Commission recommends that the aims and purposes of the TEC be: i) to ensure the development of a diverse, innovative, responsive, and accountable tertiary education system; ii) to ensure that the tertiary education system provides the basis for sustainable wealth creation; iii) to ensure life-long, equitable, and affordable access to tertiary education and training of an international standard of excellence; iv) to ensure that the tertiary education system is properly informed by and operates in conformity with the principles of the Treaty of Waitangi; and v) to protect academic freedom and to ensure a level of institutional autonomy consistent with the efficient use of resources, the national interest, and the demands of public accountability.

5.2.2 Functions and Powers

To enable it to achieve its aims and purposes, the Commission believes that the TEC will need to have the following broad functions: provision of strategic advice; advice to the Minister on tertiary education policy; advice to the Minister on regulatory matters; negotiation and approval of provider profiles; allocation of funding; monitoring of provider performance; facilitating the achievement of the Governments tertiary education strategy; and research and evaluation. The TEC and the Minister will require a range of powers to give effect to these functions. These are discussed below.

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Strategic advice
The TEC would provide advice on the strategy for the tertiary education system. This advice would be directed to the Minister, to providers, and to the other stakeholders of the tertiary education system. The Government would be responsible for determining the strategic direction of the tertiary education system, and would draw upon the advice of the TEC and the Ministry of Education as well as input from other agencies. The TEC would then be responsible for giving effect to the Governments strategic vision in a manner consistent with the principles of autonomy, academic freedom, and responsiveness to local and regional needs.

Advice on tertiary education policy

The TEC would be responsible in varying degrees for three main streams of advice: provision of services, funding, and qualifications. The TEC would have primary responsibility for providing policy advice to the Minister on the nature, form, and spread of provision within the tertiary education system. The TEC would have primary responsibility for providing advice on the overall funding needs of the tertiary education system, in conjunction with the Ministry of Education (which would have responsibility for providing advice about the tertiary education strategy from the perspective of the overall education system). At a more detailed level, the TEC would also have primary responsibility for advice on the allocation of funding (including funding for research) within the tertiary education system. The TEC would provide advice to the Minister, in conjunction with NZQA, on tertiary education qualifications. NZQAs involvement would include ensuring coherence between senior secondary and tertiary qualifications.

Advice on regulation and decision making

The TEC would provide advice to the Minister on the exercise of the Ministers powers in respect of the tertiary education system. This would include advice on: the establishment of TEIs (currently covered by s162 of the Education Act 1989); the disestablishment or merger of TEIs (cf. s164 of the Education Act 1989); the use of protected terms (cf. s264 of the Education Act 1989); the recognition of ITOs (cf. s6 of the Industry Training Act 1992); the recognition of GTEs; the setting of mandatory requirements for charters (currently s190 of the Education Act 1989); the approval of TEI charters (cf. s184 of the Education Act 1989); the approval of non-TEI charters; the withdrawal of non-TEI charters; and the appointment of TEI council members (cf. s171 of the Education Act 1989). The TEC would be expected to act in a proactive manner, with the objective of implementing the tertiary education strategy. For example, the TEC would be expected to provide advice to the Minister on the desirability of establishing or changing the status of a provider, based upon its research and evaluation, and how such a development would support the tertiary education strategy.

Negotiation and approval of profiles

The TEC would have responsibility for negotiating and approving provider profiles (see Section 4.1.3). The TEC would also negotiate charters on behalf of the Minister (see Section 4.1.2).

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Allocation of funding
The TEC would allocate all funding to providers and other organisations (including ITOs) for the support of teaching and learning. It would also allocate the funding for research currently included in Vote: Education. (Further details on funding mechanisms and systems will be provided in the Commissions future reports.)

Monitoring of provider performance

The TEC would monitor the performance of providers against their charters and profiles. This monitoring would include financial performance (to ensure financial viability). It would also include monitoring the performance of TEIs and other publicly funded providers in respect of their obligations under the Treaty of Waitangi as specified in their charters. Quality assurance of providers would remain the responsibility of NZQA and the NZVCC, NZPPC, and CEAC. The TEC will use quality-assurance information from these organisations when it considers providers charters, profiles and functional classifications.

Facilitatory roles
The TEC would have a strong facilitatory role in working with the systems stakeholders. This could include facilitating collaboration and co-operation between stakeholders, facilitating and promoting the articulation of learning and credit transfer, or assisting stakeholders in planning for future developments within the tertiary education system. The Commission envisages that the TEC would offer a wide range of advice to the key stakeholders of the system. This could include providing information to learners on career opportunities (and available courses and programmes) in partnership with the tertiary education system, industry, and the wider community.

Research and evaluation

The TEC would conduct research and consult widely, so that its advice is based on a credible depth and breadth of knowledge about the system. It would also undertake research and evaluation on the performance of the tertiary education system and promote models of good practice.

Recommendation 25
The Commission recommends that the TEC have the following statutory functions, powers and responsibilities: a) to advise the Minister, providers, and other stakeholders on the strategic direction of the tertiary education system; b) to advise the Minister on policy in relation to: i) the nature, form and spread of provision within the tertiary education system; ii) the allocation of tertiary education funding, including funding to support research within the tertiary education system; and iii) tertiary education qualifications, in conjunction with NZQA (cf. s253(b) of the Education Act 1989); c) to advise the Minister on exercising the following powers: i) the establishment of TEIs (cf. s162 of the Education Act 1989); ii) the disestablishment or merger of TEIs (cf. s164 of the Education Act 1989); iii) the use of protected terms (cf. s264 of the Education Act 1989); iv) the recognition of ITOs (cf. s6 of the Industry Training Act 1992); v) the recognition of GTEs (cf. s159 of the Education Act 1989); vi) the setting of mandatory requirements for charters (cf. s190 of the Education Act 1989); vii) the approval of TEI charters (cf. s184 of the Education Act 1989); viii) the approval of non-TEI charters; ix) the withdrawal of non-TEI charters; and x) the appointment of TEI council members (cf. s171 of the Education Act 1989); 41

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d) to negotiate and approve profiles (cf. s203 of the Education Act 1989); e) to allocate funding to tertiary education providers, including: i) funding grants to TEIs (cf. s199 of the Education Act 1989); ii) funding grants to non-TEIs with approved charters (cf. s238A); iii) administration of other funding schemes (cf. s271 of the Education Act 1989); iv) funding to ITOs (cf. s10 of the Industry Training Act 1992); f) to monitor tertiary education provider performance, including: i) monitoring of TEI financial performance (cf. s203 of the Education Act 1989); ii) monitoring of non-TEI financial performance (cf. s238A of the Education Act 1989); iii) obtaining information from providers (cf. s255 of the Education Act 1989); g) to provide advice to providers, learners, and those with an interest in the tertiary education system; and h) to research and evaluate the performance of the tertiary education system.

5.2.3 Accountability of the TEC

The TEC should be an Autonomous Crown Entity (ACE) and be formally accountable to the Minister, who would appoint the chair and the members of the board. The TEC would negotiate an annual document of accountability with the Minister, specifying the financial and other parameters within which the TEC would operate. There would also be a separate specification of the fiscal and policy parameters within which the TEC would exercise its funding powers. This would be specified by the Minister. The Commission believes that the TEC should conduct an annual review of its performance. This review would cover its document of accountability, progress in achieving its statutory aims and purposes, and how effective it has been in the performance of its functions. It is expected that the TEC would provide reports on its work including research and analysis of the effects of that work to the Minister. These reports would be published, and would inform both the TECs own work and the work of others in the tertiary education system.

Recommendation 26
The Commission recommends that the Minister have the following powers in relation to the TEC: a) to appoint the chair of the board; b) to appoint the members of the board (but not the head of secretariat); c) to approve, with the board, a document of accountability; d) to determine overall tertiary education funding levels, policy, and parameters; and e) to direct the TEC to provide advice or conduct research on any matters within its areas of responsibility.

5.2.4 Structure and Operations

There are two main approaches to the structure and composition of intermediary bodies. In the first, a governing board is responsible primarily for the policy framework and the strategic direction of the intermediary body with functional operations being handled by a chief executive and a relatively large secretariat. The second approach involves a somewhat smaller secretariat supporting a working commission, the members of which would be appointed for their expertise and be expected to have more direct involvement in day-to-day operations. There are examples of both forms of organisation in the New Zealand public sector. Internationally, both types of governing bodies exist. In Ireland, for example, the Higher Education Authority has a board of 18 members and a more hands-on approach to the workings of their tertiary education system. It is supported by a secretariat of 25. By contrast, the Higher Education Funding Council for England has a board of 15 who have responsibility for the councils strategic direction; operational matters are conducted solely by the executive (which numbers 160).

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On balance, the Commission favours the model of a working commission for the TEC. The Commission believes that the members of the TEC board should be selected for their expertise and understanding of tertiary education issues, and for the contribution they can make to the system and its ability to meet the nations needs. The Commissions view is that the TEC should have a unitary board that has responsibility for the entire tertiary education system. It should have a broad focus, and should be serviced by a secretariat that can respond to the diverse interests of the tertiary education system and its stakeholders. Since the TEC will be responsible for the entire tertiary education system, it will need to employ people who have a detailed understanding of each constituent part of the tertiary education system and who are capable of building strong relationships with all the relevant stakeholders. The Commission also expects that the TEC will set up bodies to provide it with expert advice on different parts of the system. The rest of Section 5.2 sets out the Commissions proposals for the TECs board and secretariat.

Board membership
The board of the TEC would comprise up to twelve members, including a chair. All members would be working members and appointed by the Minister. The members of the TEC board would need to be persons of high calibre, with a breadth of experience and expertise sufficient to enable the proactive steering of the tertiary education system in a manner that contributes to and supports national strategies. A minimum of two members would be Maori, reflecting the importance of the Treaty of Waitangi and the needs of Maori in the tertiary education system. No member would represent any particular organisation; instead, each would be expected to work in the interests of the tertiary education system and the nation as a whole. Remuneration for the chair and other board members must be sufficient to attract the highest calibre of persons. All members would be appointed for three-year terms, with a maximum of three consecutive terms. Ideally, to preserve institutional memory and create a measure of continuity, there would be overlapping terms of appointment.

Recommendation 27
The Commission recommends that: a) the board of the TEC have up to twelve members, including a chair; b) board members be persons of the highest calibre with a breadth of expertise and experience sufficient to enable the proactive steering of the tertiary education system in a manner that contributes to and supports national strategies; c) no member represent a particular organisation; d) at least two members be Maori; e) remuneration for the chair and other board members be sufficient to attract the highest calibre of persons who have experience and knowledge relevant to the TECs work; f) all members be appointed for three-year terms, ideally overlapping, with a maximum of three consecutive terms for each board member; and g) the board members be required to work in the interests of the tertiary education system and the nation as a whole.

Board structure and operation

As noted earlier, the TEC board should be a working body and so the Commission envisages that the TEC would hold meetings on a regular basis. It will be essential that all of the diverse parts of the tertiary education system are reflected in the structure and operations of the TEC board. This could be achieved by establishing a range of statutory sub-committees, with either sectoral or issues-based responsibilities. There are some risks in this approach: statutory committees could reduce the flexibility of the TEC; and sectoral committees might reduce the TECs ability to promote a coherent cross-sectoral approach to tertiary education.

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Outweighing these risks, however, is the need to safeguard interests and issues that are not currently well integrated with the rest of the tertiary education system especially industry training, second-chance education, community education, and Maori tertiary education. Research and post-graduate study are also a priority, given their importance for the development of a knowledge society. The Commissions view is that the board of the TEC should have a range of advisory bodies (whether established by statute or by the board itself), with additional members from within the relevant parts of the tertiary education system (and externally, if required). It would be expected that this would include bodies with responsibility for advising on areas such as: post-graduate education and research; degree-level education; vocational education and industry training; community education; and Maori tertiary education. In addition, the board of the TEC would need to be able to establish permanent or temporary reference groups for cross-sectoral issues such as second-chance education, workplace learning, e-learning, access, equity, literacy, and Pacific peoples education.

Recommendation 28
The Commission recommends that: a) meetings of the board be held on a regular basis; b) the board have advisory bodies, with additional members from the relevant parts of the tertiary education system (and from outside the tertiary education system, if required); c) the advisory bodies of the board be responsible for areas such as post-graduate education and research, degree-level education, vocational and industry training, community education, and Maori tertiary education; and d) the board be able to establish permanent or temporary reference groups for cross-sectoral issues such as second-chance education, workplace learning, e-learning, access, equity, literacy, or Pacific peoples education.

Secretariat
The TEC secretariat should be of a sufficient size to carry out the various functions, powers and responsibilities of the TEC efficiently and effectively. It should also have relevant expertise, and be organised in such a way that it can meet the needs of all parts of the system, including those areas identified above requiring particular attention. For instance, the Commission is strongly of the view that there should be a unit within the TEC secretariat that has the specific competence to address Treaty of Waitangi issues (including barriers to Maori participation in tertiary education). There will need to be a head of the secretariat, responsible to the TEC board for the performance of the secretariat. At any one time, a reasonable percentage of the TEC secretariat should be on secondment from other organisations in the tertiary education system. This will ensure that the secretariat understands and reflects the system it has been established to serve. The extent to which the TEC should have a regional presence will require careful consideration. What is essential is that the TEC be in a position to understand and respond to the interests and concerns of regional providers and communities. This might be achieved by strategies such as: the TEC itself having regional offices; requirements on providers (and ITOs) to demonstrate how they are responsive to identified local and regional social and economic needs; the establishment of strong linkages between the TEC and local government and other government agencies with regional networks, such as the Career Services, Te Puni Kokiri, the Ministry of Pacific Island Affairs, the Department of Work and Income, and the Ministry of Economic Development.

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The Commission believes that this issue will need to be worked through carefully by its proposed TEC establishment unit.

Recommendation 29
The Commission recommends that: a) the TECs secretariat be sufficiently large to undertake the functions, powers and responsibilities of the TEC; b) the secretariat have the expertise and the organisational structure necessary to meet the needs of all the parts of the system; c) there be a unit within the secretariat with the specific competence required to address issues relating to the Treaty of Waitangi; d) there be a head of the secretariat, appointed by the TEC board, and accountable to the board for the performance of the secretariat; e) at any given time, a reasonable percentage of secretariat members be on secondment from the tertiary education system; and f) the secretariat have the means to ensure that the board is in a position to understand and respond to the interests and concerns of regional providers and communities.

5.3: Implications for Other Central Structures

The establishment of the TEC will have implications for a number of existing central structures. In this section, the Commission briefly describes some changes to the powers of the Minister of Education; the powers and functions that will be transferred to the TEC from other agencies (including disestablishing some agencies); and the relationship of the TEC to other central structures.

5.3.1 Minister
Under the recommendations in this Report, the Minister will retain the majority of his or her current powers but the provision of advice to the Minister on the exercise of these powers will become the responsibility of the TEC. The Minister will also gain a number of new powers, which currently are exercised by other bodies. The Minister will retain decision-making power on the following matters: the establishment of TEIs (cf. s162 of the Education Act 1989); the disestablishment or merger of TEIs (cf. s164); the recognition of GTEs; the setting of mandatory requirements for charters (cf. s190); the approval of TEI charters (cf. s184); and the appointment of TEI council members (cf. s171). The Minister will gain the following new powers: the use of protected terms (cf. s264); the recognition of ITOs (cf. s6 of the Industry Training Act 1992); the approval of non-TEI charters; and the withdrawal of non-TEI charters. Two powers will be transferred to the TEC. These are: granting of funding to individual TEIs (cf. s199 of the Education Act 1989); and granting of funding to non-TEIs (cf. s238A of the Education Act 1989). The Minister would also retain the power to set the overall level of funding for tertiary education, and to establish the funding policy framework(which the TEC will implement).

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Recommendation 30
The Commission recommends that the Minister have the following new powers: a) granting the right to use protected terms (c.f. s264 Education Act 1989); b) recognising industry training organisations (c.f. s6 of the Industry Training Act 1992); c) approving non-TEI charters; and d) withdrawing non-TEI charters.

5.3.2 Ministry of Education

The Commissions proposals will substantially affect the Ministry of Education. Primary responsibility for tertiary education policy, resourcing, and monitoring the performance of tertiary education providers would transfer to the TEC. (This means the work of the Ministrys Tertiary Advisory Monitoring Unit (TAMU) would move to the TEC.) As part of its responsibility for overall education policy, the Ministry will need to retain a policy capability for monitoring the performance of the TEC. This capability needs to be sufficient to analyse the performance of the TEC and to provide, at a strategic level, a measure of independent advice to the Minister and the Government on tertiary education issues.

Recommendation 31
The Commission recommends that primary responsibility for tertiary education policy, tertiary education resourcing, and the monitoring of tertiary education be transferred to the TEC, but that the Ministry of Education retain responsibility for education policy as a whole (including tertiary-education-policy capability at a strategic level) and for monitoring the performance of the TEC.

5.3.3 Skill New Zealand

The Commissions recommendation to establish the TEC would mean that the functions currently performed by Skill New Zealand would be transferred to the TEC. As a result, there would be no need to retain Skill New Zealand as a separate entity. The opportunities that the regional structures of Skill New Zealand could provide as the basis of a regional network to support the work of the TEC need to be considered further. These issues are discussed in Chapter 10.

Recommendation 32
The Commission recommends that the responsibilities of Skill New Zealand (for the Industry Training Strategy and for the funding of second-chance education) be transferred to the TEC, and that Skill New Zealand be disestablished.

5.3.4 Quality-Assurance Bodies

As discussed previously in Section 5.1, the Commission believes it is essential that the responsibilities for quality assurance in tertiary education be separated from responsibilities for the allocation of funding. There are inherent difficulties in having the organisation that approves the quality of courses and programmes also making decisions about whether those programmes should receive public funding. An organisation carrying out both roles will find it that much more difficult to resist pressures to fund all quality-assured programmes. The Commission, therefore, believes that separate organisations should continue to carry out these responsibilities within the tertiary education system.

Recommendation 33
The Commission recommends that NZQA and other quality-assurance agencies continue to have responsibility for the quality assurance of tertiary education providers.

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While the Commission believes there should be an operational separation between the functions of quality assurance and funding allocation, it also recognises the importance of maintaining the coherence of those tertiary education qualifications that are currently the responsibility of NZQA. The further issue of the integration between tertiary and school qualifications also needs to be kept in mind, given that NZQA is responsible for all school-based qualifications. Consequently, the Commission believes that providing mechanisms for the TEC to have input into the process of developing NZQAs document of accountability, and in appointing NZQA board members, would assist in creating the necessary coherence and integration.

Recommendation 34
The Commission recommends that the TEC have responsibility for providing input into the process of negotiating the document of accountability between NZQA and the Minister, and for providing advice on the appointment of NZQA board members, in conjunction with the Ministry of Education.

5.3.5 Career Services

The Commission believes that the functions carried out by Career Services are a central part of steering the system. In fact, the Commission believes that there is a need to expand the level of such services to students, and to consider options such as brokering and/or central admissions as ways of improving learners access to relevant learning within the tertiary education system. The Commission has not yet finalised its views on these matters; they will be addressed in its future reports. It is clear that the TEC, NZQA and Career Services need to work together closely but it is not clear how this might best be achieved, given that the Commission has not yet determined the precise functions to be carried out.

Recommendation 35
The Commission recommends that Career Services work in conjunction with the TEC, and that further consideration be given to the manner in which this can best be achieved.

5.3.6 Tertiary Education Advisory Commission

Once the TEC is fully established, it would take over the functions of TEAC. TEAC would then be disestablished.

Recommendation 36
The Commission recommends that TEAC be disestablished once the TEC is fully established.

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Chapter 6: The Steering Instruments

The first of the five elements in the Commissions high-level strategy for the tertiary education system is a comprehensive and coherent approach to policy and regulation that recognises the distinctive roles of each part of the system in relation to the whole. To produce a more comprehensive and coherent approach, the Commission has proposed the introduction of an integrated package of new steering instruments and the better use of existing ones. This integrated package is referred to as the profiling system. Chapter 4 gave an overview of how the package is intended to work. This chapter provides details of the operation of its main features functional classification, charters, and profiles and discusses how the TEC will implement them. How the TEC will use these instruments to shape the system will be discussed in Chapter 8.

6.1: Functional Classifications

Functional classification is a new instrument developed by the Commission. The proposed classifications described here are intended to provide the means by which existing activities, and potentially new activities of providers, can be managed in a coherent and comprehensive manner. Consistent with its conclusions in Shaping a Shared Vision, the Commission has also focused on ensuring that all forms of tertiary education are included in the classification system in a coherent and logical manner. This does not presuppose that all these forms of provision or activity will be regulated or funded in the same manner or to the same extent in fact it is the Commissions intention that these classifications provide the basis for differentiation. The proposed functional classifications are: learning and assessment support; community education and training; industry or professional education and training; comprehensive teaching; specialist teaching; comprehensive teaching and research; specialist teaching and research; and akoranga Maori.

6.1.1 Learning and Assessment Support

Given the importance of lifelong learning, as well as the need for flexible pathways and improved access for those who have not succeeded in traditional education environments, the Commission believes that learning and assessment support is a vital activity within the tertiary education system. The activities covered by the functional classification learning and assessment support would include: providing advice, guidance, and/or brokerage services that help learners to access learning; and helping learners to gain recognition of their achievement. These activities would relate to NQF levels 1 to 6, and would focus on the recognition of learning. Examples of existing providers whose activities could fall within this functional classification are registered assessors (ITOs), recognition-of-prior-learning (RPL) service providers, career advisory services, libraries, and museums.

6.1.2 Community Education and Training

The Commission is committed to providing a means for the recognition of the important role played by adult and community education and, to this end, it proposes a functional classification of community education and training. This functional classification would include: assisting community and personal development; providing or supporting learning environments in areas of general education and training; and helping learners to gain

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recognition of their achievement. These activities would focus on NQF levels 1 to 6, and would include nonformal learning as well as learning leading to certificates and diplomas. Having this functional classification makes it possible for the regulatory and funding system to recognise that community education is focused on developing communities and people. It will also assist in identifying community-education activities that occur within different types of providers and institutions, and in linking them across the tertiary education system. Examples of existing providers whose activities could fall within this functional classification are adult and community education providers, many PTEs, and OTEPs such as Literacy Aotearoa, Workbase Education Trust, and PIERC Education.

6.1.3 Industry or Professional Education and Training

An important area of activity requiring specific classification is that of industry or professional education and training. The focus here is on workplace learning, but it also encompasses ongoing professional development. Such a functional classification will provide the means to regulate and fund this important part of the system in ways that are relevant to its needs. This functional classification would include activities such as: assisting industry in skills acquisition and professional development; providing or supporting learning environments, particularly in industry or professional education and training; and helping learners to gain recognition of their achievement. It would cover the full range of NQF levels from 1 to 8, and would include the recognition of learning through national standards, certificates, and diplomas. Examples of existing providers whose activities could fall within this functional classification are ITOs, apprenticeship co-ordinators, many PTEs, GTEs such as the New Zealand Police and the New Zealand Army, and professional bodies such as the Institute of Chartered Accountants.

6.1.4 Comprehensive Teaching

This functional classification recognises the benefits of offering a broad range of learning opportunities within a single environment. It reflects the fact that specific requirements, such as economies of scale, are needed to support such an environment. The functional classification of comprehensive teaching includes: providing a wide diversity of formal education and training (up to and including undergraduate-degree-level programmes); and carrying out research that supports undergraduate-degree programmes. These activities would focus on NQF levels 3 to 7, and would lead to the recognition of learning through certificates, diplomas, and undergraduate degrees. This classification includes the conduct of research that supports undergraduate teaching, as this is an essential component of degree provision. Examples of existing providers whose activities could fall within this functional classification are polytechnics and some PTEs.

6.1.5 Specialist Teaching

In some areas specialisation and focus is essential, although the costs of providing this specialisation may be high. It is therefore important to be able to classify certain activities as specialist teaching, since this will help foster and facilitate specialisation within the system. The functional classification of specialist teaching includes: providing specifically focused formal education and training in a limited number of fields (up to and including undergraduate-degree-level programmes); and carrying out research that supports undergraduate-degree programmes. These activities would focus on NQF levels 3 to 7, and lead to certificates, diplomas, and undergraduate degrees. This classification includes the conduct of research that supports undergraduate teaching, as this is an essential component of degree provision. Examples of existing providers whose activities could fall within this functional classification are colleges of education, OTEPs such as the New Zealand Schools of Dance and Drama and Taratahi Agricultural Training Centre, and some PTEs.

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6.1.6 Comprehensive Teaching and Research

Comprehensive teaching and research activities which provide the basis for virtually all degree-level study should be recognised within the functional classification system. The functional classification of comprehensive teaching and research would include: carrying out research in a wide diversity of fields; and providing a wide diversity of formal education and training. These activities would be focused on NQF levels 5 and above, and include provision of diploma, undergraduate, and post-graduate degree programmes. Most of the activities of universities would fall within this functional classification.

6.1.7 Specialist Teaching and Research

There will be a number of areas of specialist teaching and research where, for reasons of research specialisation or high cost, it is desirable to concentrate effort within the tertiary education system. The functional classification system should recognise this, in a manner that facilitates the specialisation and concentration sought for the system as a whole. The functional classification of specialist teaching and research would include: carrying out specifically focused research in one or more fields; and providing specifically focused formal education and training in one or more fields (primarily undergraduate-degree and post-graduate-level programmes). These activities would be focused on NQF levels 5 and above, and would involve the delivery of diploma, undergraduate, and postgraduate degree programmes. Examples of existing providers whose activities could fall within this functional classification are professional schools (such as medicine, engineering, and architecture) and graduate schools.

6.1.8 Akoranga Maori

Given the responsibilities of the Crown under the Treaty of Waitangi, it is important that learning and knowledge in a Maori context is recognised and addressed appropriately within the tertiary education system. The functional classification of akoranga Maori would include supporting learning, or providing education and training, according to ahuatanga Maori and tikanga Maori. These activities could be carried out in a wide variety of contexts, and by different types of providers. Examples of existing providers whose activities could fall within this functional classification are wananga and Maori PTEs.

6.1.9 Further Classifications

The Commission does not believe that these proposed functional classifications should be used as a rigid and exclusive statement of functions and activities. Rather, they are intended as a tool that gives focus and direction to the processes of profiling and funding allocation.

Recommendation 37
The Commission recommends that consideration be given to the following functional classifications of provider and qualityassured learning environments as a basis for preparing and negotiating charters and profiles: a) learning and assessment support; b) community education and training; c) industry or professional education and training; d) comprehensive teaching; e) specialist teaching; f) comprehensive teaching and research; g) specialist teaching and research; and h) akoranga Maori (Maori learning). The Commission proposes that the proposed functional classifications have the meanings shown in Table 6.1 on the following page.

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PROPOSED FUNCTIONAL CLASSIFICATIONS

(TABLE 6.1)
FUNCTIONAL CLASSIFICATION FUNCTIONS & ACTIVITIES NQF LEVELS / QUALIFICATIONS EXAMPLES OF EXISTING PROVIDERS

Learning and Assessment Support

providing advice, guidance, and/or brokerage services that help learners to access learning helping learners to gain recognition of achievement

levels 1 6 (recognition of learning)

registered assessors (ITOs) RPL service providers career advisory services libraries and museums

Community Education and Training

assisting community and personal development providing or supporting learning environments in areas of general education and training helping learners to gain recognition of achievement

levels 1 6 (non-formal learning, certificates, diplomas)

adult and community education providers many PTEs OTEPs (eg Literacy Aotearoa, Workbase Education Trust, PIERC Education)

Industry or Professional Education and Training

assisting industry or professional skills development providing or supporting learning environments particularly in industry or professional education and training helping learners to gain recognition of achievement

levels 1 8 (national standards, certificates, diplomas)

ITOs apprenticeship coordinators many PTEs GTEs (eg NZ Police, NZ Army) professional bodies (eg Institute of Chartered Accountants)

Comprehensive Teaching

providing a wide diversity of formal education and training, up to and including undergraduate-degreelevel programmes carrying out research that supports undergraduate-degree programmes

levels 3 7 (certificates, diplomas, undergraduate degrees)

polytechnics some PTEs

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PROPOSED FUNCTIONAL CLASSIFICATIONS continued

(TABLE 6.1)
FUNCTIONAL CLASSIFICATION FUNCTIONS & ACTIVITIES NQF LEVELS / QUALIFICATIONS EXAMPLES OF EXISTING PROVIDERS

Specialist Teaching

providing specifically focused formal education and training in a limited number of fields (up to and including undergraduate-degreelevel programmes) carrying out research that supports undergraduate-degree programmes

levels 3 7 (certificates, diplomas, undergraduate degrees)

colleges of education OTEPs (eg NZ Schools of Dance and Drama, Taratahi Agricultural Training Centre) some PTEs

Comprehensive Teaching and Research

carrying out research in a wide diversity of fields providing a wide diversity of formal education and training (primarily undergraduate-level and post-graduate-level degree programmes)

levels 5+ (diploma, undergraduate, post-graduate degree programmes)

universities

Specialist Teaching and Research

carrying out specifically focused research in one or more fields providing specifically focused formal education and training in one or more fields (primarily undergraduate-level and post-graduate-level degree programmes

levels 5+ (diploma, undergraduate, post-graduate degree programmes)

professional schools (eg medicine, engineering, architecture) graduate schools

Akoranga Maori

supporting learning, or providing education and training, ahuatanga Maori and tikanga Maori

a range of levels (depends on the providers primary functional classification)

wananga Maori PTEs

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6.1.10 Process of Functional Classification

The proposed functional classifications are intended as a tool to bring about greater focus and differentiation in the tertiary education system. Providers will be able to identify more clearly their role and function within the system; and the TEC will be able to encourage provider excellence in areas of specialisation. The functional classifications are intended to play a leading role in the organic development of the tertiary education system, and to encourage new forms of delivery within a coherent and managed context. It is therefore proposed that providers be classified within more than one functional classification in situations where this would assist differentiation and specialisation. For example: a provider whose activities are classified principally as comprehensive teaching might also have some activities classified as specialist teaching and research, if it had a concentration of expertise in a specialist area of research and post-graduate education. Equally, a provider whose activities are classified principally as comprehensive teaching and research might also have some of its activities classified as industry or professional education and training.

Recommendation 38
The Commission recommends that some or all of the activities of providers and quality-assured learning environments be classified within more than one functional classification, where this is agreed with the TEC. The importance of maintaining this flexibility can be seen when it comes to classifying activities as akoranga Maori. This particular classification would identify that a provider, either in relation to all of its activities or in a specified area, was providing education and training in a context of ahuatanga Maori and tikanga Maori. It would also be possible, and useful, to identify the other foci of the providers activities which could range from learning and assessment support to specialist teaching and research. Also important is the role of Maori in determining which activities should be recognised as falling within akoranga Maori. The Commissions view is that Maori rightfully have a central role in determining which providers activities are classified as akoranga Maori, and that the proposed TEC should establish processes for achieving this.

Recommendation 39
The Commission recommends that processes be established by the TEC to enable Maori to play a central role in determining which providers should be classified within the functional classification of akoranga Maori.

6.2: Charters
The importance the Commission attaches to charters can be seen from its recommendation (see Section 4.1.2) that a charter be a requirement for any provider seeking public funding. Charters set the providers medium- to long-term goals and objectives. They are an existing policy instrument that can be adapted and modified to provide an effective tool (when used in conjunction with functional classifications and profiles) for allocating funding and helping to steer the system. Ultimately, charters will create greater predictability and stability in the tertiary education system. The Commission believes that while the current processes for the negotiation of charters are generally appropriate, two specific changes are required: to assist in the steering of the tertiary education system, there must be more active use of the Ministers current powers to specify mandatory requirements for charters (under s184 to s191 of the Education Act 1989); and responsibility for advising the Minister on the content of charters should be transferred to the TEC.

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With these changes, the Minister and the TEC will be able to use charters as a mechanism for steering individual providers at a strategic level and also to assist in steering the system as a whole. This is because charters are medium- to long-term strategic documents that describe not only the nature of their agreed role and function within the system, but also how the provider contributes to the strategic development of the tertiary education system. Although the focus of charters is on the medium to long term (covering five to ten years), providers should be able to modify them in response to changing needs. Such modifications would need to be approved by the Minister on the advice of the TEC.

Recommendation 40
The Commission recommends that, in approving charters, the Minister be advised by the TEC.

6.2.1 Content of Charters

The content of charters should reflect both the role of charters in the steering process and their function as medium- to long-term strategic documents. While charters should include a consistent and coherent range of information, the type of information required should vary according to the individual provider and the functional classification of its activities. The Commission envisages that there would be significant differences in the content of charters for different providers. The charter of an adult and community education provider, for example, would be quite different in scope and content from that of a university. The TEC, in conjunction with provider representatives, could develop charter templates to assist providers in this process. Charters would include some or all of the following information:

Mission and special character

This states the providers mission, and the special characteristics that differentiates it from other providers. It would take into account the providers legal form, and the functional classification(s) of its activities.

Contribution to New Zealands identity and its economic, social and cultural development
This is the providers contribution to its region as well as to the nation as a whole. It could also include details on wealth and employment creation.

Contribution to the tertiary education system as a whole

In this, the provider builds on its statement of special character. Information here could include the providers pedagogical approach, its regional spread, and its distinctive products and services.

Collaboration and co-operation with other tertiary education providers (OTEPs) and those outside the tertiary education system
This is a description of how the provider works with other parts of the tertiary education system and those outside it. It could include articulation arrangements with other providers, and also the nature of the providers relationships with research institutes, industry groups, and its community.

Fulfilling its obligations under the Treaty of Waitangi

It is essential that each provider detail how it will give effect to the Treaty of Waitangi that is, how it will meet and fulfil its Treaty obligations.

Improving equity of access

This is a statement of equal education opportunities for those groups who have been traditionally underrepresented in the tertiary education system. It could include initiatives such as allowing for improved pastoral care, physical access, and other facilities for disabled groups.

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Supporting credit transfer and the recognition of prior learning

Here the provider sets out how it recognises prior learning and how it provides effective pathways for learners who are seeking to build on previous qualifications and learning experiences.

Meeting the educational needs of learners

This outlines a providers educational programmes and services, the NQF levels covered, and any research plans (if appropriate).

Ensuring the professional development of staff

This states the providers approach to meeting the professional development needs of their academic and general staff so that the staff profile remains appropriate to the providers mission and special character.

Strategic planning
This describes the providers approach to strategic planning with particular emphasis on how all relevant stakeholders can have appropriate input into this process.

Environmentally sustainable activities

Providers will state how they ensure that their activities are undertaken in an environmentally sustainable manner.

Long-term financial viability

This is information on how providers will maintain their financial viability over the long-term. It must include a description of the providers approach to capital management, and it must specify any plans for significant capital investment (or disinvestment).

Recommendation 41
The Commission recommends that all charters include the following general types of information, although the exact content of charters will vary with the providers functional classification: mission and special character; contribution to New Zealands identity and economic, social and cultural development; contribution to the tertiary education system as a whole; approach to collaboration and co-operation with other tertiary education providers and those outside the tertiary education system; approach to fulfilling its obligations under the Treaty of Waitangi; contribution to improving equity of access; approach to supporting credit transfer and the recognition of prior learning; approach to meeting the educational needs of learners; approach to ensuring the professional development of its staff; approach to strategic planning; approach to ensuring that its activities are undertaken in an environmentally sustainable manner; and approach to ensuring its long-term financial viability, including capital investment and management.

6.3: Profiles
Profiles are a new policy instrument designed to replace the existing instruments used for the allocation of funding, such as statements of objectives and Skill New Zealand contracts. Profiles will differ markedly from the existing policy instruments in that they will apply to all tertiary education providers who operate in New Zealand, rather than just to those who receive public funding. Charters (described in the previous section of this chapter) provide one component of the steering framework, in that they give information about providers who receive public funding. Profiles provide more detailed information about programmes and activities of all providers and this information, when aggregated, can be used as an instrument for steering the tertiary education system.

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The kinds of details and performance indicators required in profiles would vary according to the functional classification within which the provider falls. For example, the information requirements for organisations carrying out community education and training will vary significantly from those for organisations carrying out comprehensive teaching and research. The Commission envisages that the TEC could initiate the development of profile templates and the information supplied by providers during the process of establishing the functional classification(s) of their activities could be used as the basis for these templates. This would reduce the administrative and compliance costs of preparing profiles, and would allow a provider to indicate their distinctive characteristics. Functional classifications, charters, and profiles will collectively provide an improved means for steering the tertiary education system. But it is also important to balance this by encouraging provider responsiveness to local needs, preserving an appropriate level of institutional autonomy, and safeguarding academic freedom. Profiles should therefore be used to steer the tertiary education system in two ways: 1. During the process of negotiating and agreeing profiles, they should be used as an opportunity to identify areas of duplication and gaps in delivery. 2. Once the profiles are completed, they should be used to inform decisions on the allocation of public funding. The implication of this approach is that profiles should not be used to prevent the delivery of programmes or the carrying-out of activities. Providers must be able to choose what programmes or activities to offer even though they may not receive public funding for these programmes and activities. Given this view, the existing power of the Minister under s223(3) of the Education Act 1989 to prevent a TEI from offering a particular course on the basis of the efficient use of national resources is undesirable. If the system of negotiating profiles and charters provides a mechanism for selectively determining not to fund certain activities, it is clearly unnecessary to actually prevent activities from being carried out. Indeed, to do so is a greater infringement of the principle of academic freedom and institutional autonomy than is necessary.

Recommendation 42
The Commission recommends that profiles be used as a basis for determining the allocation of public funding to eligible tertiary education providers, but not for determining which programmes and activities they may carry out, and that consequently s223(2) of the Education Act 1989 be repealed.

6.3.1 Profiles to Have Two Parts

The dual role of profiles that is, to provide information about activities and programmes and their providers, and to provide a basis for decisions about funding will require profiles to be organised into two parts. The first part will provide general information about the providers distinctive character, strategic direction, and planned activities over the forthcoming triennium (three-year period). For providers who also have charters, this will involve an explanation of how the goals and objectives in the charter will be met over this period. For other providers (non-funded but quality-assured providers57), the focus will be upon ensuring that the content of the profile is a complete and accurate description of the programmes and educational activities of the organisation. The second part will be relevant only to those providers who also have charters (that is, those who receive public funding). This part of the profile will set out information about the providers public funding, with particular emphasis on planned new activities and the rationalisation of existing activities. This part of the profile will also cover the forthcoming triennium.
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Quality-assured providers provide learning in a quality-assured learning environment (see Section 3.2.4).

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Recommendation 43
The Commission recommends that profiles contain two main parts: the first containing general information on the programmes and activities of the provider; and the second identifying, for providers with approved charters, the funding requested by the provider for its anticipated activities over the forthcoming triennium.

6.3.2 General Content of Profiles All Providers

All quality-assured providers, whether they receive public funding or not, will provide the following information in their profiles:

Mission and special character

The profile will identify a providers core mission, and also their special character or characteristics. The core mission should be related to the needs (of learners, the wider community, the nation) that the provider is seeking to meet, and indicate how it proposes to satisfy these needs. The special character should relate to the providers charter (if any), its functional classification, its legal form, and any protected terms.

Strategic direction
Providers will include information on their current and proposed plans. This could include plans to rationalise activities, reduce (or increase) staffing, pursue collaborative arrangements, undertake major developments (such as new sites, new activities or programmes) or investigate proposals for mergers, change of status, and so forth.

Contribution to the tertiary education system

This will identify the providers place in the tertiary education system, including its contribution to the system and the impact of its activities on others in the system. It should outline partnerships and collaborations with other providers, international activities, and articulation and credit-transfer arrangements. It should also include how proposed developments such as the introduction of new activities, major changes to existing activities, major changes in the modes or locations of activities, or the termination of existing activities might affect other providers and student-learning opportunities.

Planned activities
This information should cover: the educational programmes the provider intends to offer, facilitate or support, defined both in general terms and specifically in relation to New Zealand Standard Classification for Education (NZSCED) and NQF levels and fields; the kinds of research the provider intends to undertake, including its research and research-training management plans; the community or industry-development activities the provider intends to undertake; and the modes, sites, and regions where these activities will take place.

6.3.3 Additional Content of Profiles Chartered Providers Only

The profiles of chartered providers (that is, those who receive public funding) will supply the following additional information:

Forecasts of demand for currently funded programmes and activities

This will contain information about the funding implications of programmes and activities for which the provider is already funded. The information should include forecasts of expected changes in the volume and pattern of demand, and the implications of these on funding. It should also include the implications that existing research and community- or industry-development activities have for funding.

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Planned new programmes or activities

This will identify new programmes or activities for which the provider seeks public funding. It should include the expected volume and pattern of activity, and thus its implications for funding. Providers should also justify the need for the planned programme or activity, and provide information on the consideration they have given to any third-party effects it may have on the tertiary education system. The providers proposal for new activities should relate to its mission, goals and objectives as set out in its charter, and should reflect its legal form and functional classification(s).

Planned rationalisation of programmes or activities

Providers will state whether there is any proposed rationalisation or cessation of their activities. This should identify the reason for the rationalisation and the possible third-party effects. It should also consider the impact of these changes on the providers legal form and functional classification(s), and on its ability to achieve its mission and fulfil its charter.

Performance indicators
Providers will identify a range of performance indicators for their activities and their charter. These will cover (where relevant) areas such as: educational outputs (including completion of programmes); research outputs (including research training); community and industry-development outputs; equity objectives; learner-support objectives; staffing and professional-development objectives; Treaty of Waitangi obligations; environmental-sustainability objectives; and financial objectives.

Financial forecasts
Financial-forecast information should cover all specific activities over the next triennium and, where relevant, information on a providers capital-investment and capital-management plans.

Recommendation 44
The Commission recommends that all profiles include the following general types of information, although the exact content of profiles will vary according to the providers functional classification: a) the providers mission and special character; b) the providers strategic direction; c) the providers contribution to the tertiary education system; and d) the providers planned activities and programmes over a three-year timeframe. In addition, the profiles of chartered providers should include: e) forecasts of demand for currently funded programmes and activities; f) planned new programmes or activities; g) planned rationalisation of programmes or activities; h) performance indicators in relation to relevant outputs and objectives (in relation to the charter provisions of the provider); and i) financial forecasts for the provider.

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CONTENT OF PROFILES (ALL QUALITY-ASSURED PROVIDERS) TABLE 6.2

PART I: GENERAL INFORMATION

Mission and special character

identification of which needs are to be served, how this will be done, and the special role or character of the provider

Strategic direction

the providers strategic direction, and their current and proposed plans

Contribution to the tertiary education system

partnerships and collaborative arrangements articulation and credit-transfer arrangements international activities third-party effects of proposed developments

Planned programmes and activities

educational programmes (including NZSCED and NQF levels and fields) research and research training community and industry-development activities delivery modes/sites/regions

ADDITIONAL CONTENT OF PROFILES (CHARTERED PROVIDERS ONLY) TABLE 6.3

PART II: FUNDING REQUEST

Forecasts of demand for currently funded programmes and activities

forecast of expected changes in volume and pattern of learner demand, and implications for funding levels details of ongoing funded research activities details of ongoing funded community/industry development activities

Planned new programmes and activities

details of programme or activity, including anticipated volume and pattern of activity justification of the need for programme or activity third-party effects

Planned rationalisation of programmes or activities

details of the programme or activity justification of rationalisation of programme or activity third-party effects

Performance indicators (in areas such as)

educational outputs (including programme completions) research outputs (including research training) industry/community development outputs equity objectives learner support objectives staffing and professional-development objectives Treaty of Waitangi obligations environmental-sustainability objectives financial objectives

Financial forecasts

financial projections information on capital-investment and capital-management plans

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6.3.4 The Process of Negotiating Profiles

The Commission has recommended (in Recommendation 25) that the TEC have responsibility for negotiating profiles with individual providers and, where relevant, determining the allocation of funding to each provider on the basis of their profile. There will be important differences in the processes used for negotiating the profiles of funded and nonfunded providers. Profiles for funded (chartered) providers will be subject to agreement between the provider and the TEC on their contribution to the tertiary education system as a whole, and their ability to meet the core elements of the tertiary education strategy. As there are no funding implications in non-funded providers profiles, these profiles will be the subject of discussions and agreement principally in relation to their completeness and coherence. This would not preclude the TEC from making suggestions or comment on the proposed profiles of non-funded providers, so that improvements could be made in a consultative and a consensual manner. The Commission believes that in the process of developing profiles all providers should be required to undertake the same kind of stakeholder consultation that currently applies to the preparation of a statement of objectives. It is envisaged that the TEC would arrange meetings between two or more providers (for example, amongst those within the same region or amongst those offering similar programmes) in order to discuss their respective profiles. Topics to be discussed could include areas of direct competition, the potential for greater collaboration, and the implications of proposed programme developments. In this respect, the process of negotiating profiles could be as beneficial and useful as the final document itself.

Recommendation 45
The Commission recommends that providers be required to undertake consultation with relevant stakeholders in the development of their profiles.

Recommendation 46
The Commission recommends that, where appropriate, the TEC initiate meetings between providers to discuss their respective profiles.

6.3.5 Legislative Issues

In the Commissions view, profiles should be given a proper statutory basis through an appropriate amendment to the Education Act 1989. Such an amendment should specify the purpose of profiles, the nature of their content, and the process by which they are to be prepared, negotiated, and approved. It should also specify the powers that will reside with the TEC, and any constraints that should apply to the exercise of these powers. Profiles would replace statements of objectives and other policy instruments (that is, Skill New Zealand contracts and special purpose grants) that the Government uses to determine which activities of tertiary education providers it will fund.

Recommendation 47
The Commission recommends that profiles be given a statutory basis, replacing and incorporating the current requirements in relation to statements of objectives, Skill New Zealand contracts, and special purpose grants.

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Chapter 7: Legal Form and Protected Terms

Amongst the core elements of the Commissions tertiary education strategy are a systems approach to recognising the different roles of providers, and an encouragement of greater specialisation and concentration in order to promote excellence. In this chapter, the Commission use these two elements to underpin its discussion of the concepts of legal form and protected terms.

7.1: Legal Form

All tertiary education providers, or organisations responsible for a quality-assured learning environment, must have a legal form. TEIs are statutory corporations, established under the Education Act 1989. GTEs must be a government department or agency. PTEs, OTEPs, continuing education organisations, and ITOs must be bodies corporate but can take on a wide variety of forms within this. The Commission believes that it would be helpful to simplify the statutory bases under which tertiary education providers are established or recognised. The current legal form of TEIs, that of a statutory corporation, is appropriate to their function; and s236 of the Education Act 1989 provides the best framework for the recognition of non-TEI providers. The two other forms of recognition, GTEs and ITOs, should also continue to be utilised.

Recommendation 48
The Commission recommends that the following legal forms be recognised for tertiary education providers: a) public tertiary education institutions; b) private or community tertiary education providers; c) industry training organisations; and d) government training enterprises.

7.1.1 Public Tertiary Education Institutions

There are currently four types of statutory corporation that can be established under the Education Act 1989. Two of these are intended for undertaking a broad range of activities (universities and polytechnics); and two are specifically related to particular objectives (colleges of education and wananga). There is no other type of statutory corporation under which a public tertiary education institution can be established. This inflexibility creates some problems.

The need for specialist institutions

The Commission believes that the inability of the Government to establish specialist TEIs is a weakness in the regulatory framework that needs to be addressed. The Commissions view is that there are a number of examples of OTEPs and other providers (including the New Zealand Schools of Dance and Drama, and Taratahi Agricultural College) that the Government might have preferred to establish as TEIs, but there was no adequate category for them. The Commission also believes that the current requirement for most TEIs to offer a wide diversity of programmes works against the objectives of specialisation and differentiation.

Recommendation 49
The Commission recommends that s162 of the Education Act 1989 be amended to add a new type of TEI, namely a specialist institute or college with the following statutory characteristics: A specialist institute or college is characterised by teaching (and, where relevant, research of a specialist nature) that maintains, enhances, disseminates, and assists in the applications of knowledge and expertise.

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Recommendation 50
The Commission recommends that, in terms of the suggested functional classifications, a specialist institute or college be classified using any of the functional classifications except for comprehensive teaching or comprehensive teaching and research. The creation of this new category of TEI raises the question of whether it is necessary to retain the existing category of college of education. This category is a unique form of a specialist TEI, focusing on pre-service teacher education. When this category was established under the Learning for Life reforms, colleges of education provided the bulk of teacher education programmes. As the study of teacher education in Appendix 5 indicates, there have been substantial changes in this situation since that time. Teacher education is now delivered by a wide variety of providers, including universities, polytechnics, wananga, OTEPs and PTEs. Colleges of education are no longer the exclusive or primary providers of teacher education. The Commission is not of the view that the existing colleges of education should be forcibly merged with other providers. Consistent with its position that decisions on particular providers should be made on a case-by-case basis, the Commission believes that the future role of each of the existing colleges of education should be carefully considered in its own context. On the other hand, considering the broad spread of delivery of teacher education, there does not seem to be a need for a separate type of TEI for teacher education. The retention of such a category of institution alongside the more general category of specialist institute or college might lead to the conclusion the Government requires institutions of this type. The Commission therefore believes that existing colleges of education would be better classified within the new category of specialist institute or college. The Commission also recommends the consequential removal of the protected term college of education.

Recommendation 51
The Commission recommends that those TEIs currently established as a college of education under s162 of the Education Act 1989 be re-established as a specialist institute or college.

7.1.2 Private or Community Tertiary Education Providers

There are currently three ways in which non-state providers of teaching services can be recognised by the Government. The first is registration as a PTE under s236 of the Education Act 1989. The other two are through recognition as providers of other services under s321 of the Education Act 1989 and recognition as continuing education organisations under s97A of the Education Act 1964. There are established statutory criteria and procedures for the recognition and quality assurance of PTEs recognised under s236. There are, however, no criteria for the recognition or non-recognition of providers under s321 or s97A. The broad category of providers classified as PTEs contains a number of providers who do not consider themselves to be either private or engaged in training. Organisations classified as PTEs also include many adult and community education providers who could be more appropriately recognised for the important role they play in lifelong learning. The Commissions view is that, in general terms, the provisions of s236 and its related sections provide an appropriate scheme for the recognition and quality assurance of non-state providers of tertiary education. The Commission believes that the functional classifications system should be used to differentiate amongst the wide range of providers registered under these provisions. The Commission also believes that the concept of quality-assured learning environments (outlined in Section 3.2.4 of this Report) will allow the recognition of adult and community education providers, and will provide for the quality assurance of adult and community education without the imposition of overly bureaucratic requirements. It would be possible for a single legal entity, registered under s236, to be responsible for quality

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assurance and other regulatory matters in relation to a range of learning environments and thus act as an umbrella for a number of non-formal learning programmes, activities, and sites. Accordingly, the Commission believes that s321 of the Education Act 1989 and s97A of the Education Act 1964 should continue to be used for education providers outside the tertiary education system for example, organisations (including schools) that provide services in the school or early childhood education systems.

Recommendation 52
The Commission recommends that private and community tertiary education providers be recognised under s236 of the Education Act 1989; and that the term private training establishment be replaced with private or community tertiary education provider.

7.1.3 Industry Training Organisations

The Commission affirms the essential role that industry training plays in the maintenance of a wealthy society and acknowledges the vital role that ITOs58 play in the tertiary education system. Because ITOs provide an essential link between a key group of stakeholders (business and industry) and tertiary education providers, the Commission believes that business, industry, and the tertiary education system itself would benefit from the better integration of ITOs into the system. The Commission believes that the principles set out earlier for establishing and changing the status of providers should apply, as far as they are relevant, to recognition and change of status for ITOs. This would make the recognition of ITOs a power of the Minister a change that the Commission believes is important and positive, given the vital role that ITOs have as standards-setting bodies responsible for the management of education and training systems in the workplace. Harmonising their establishment process with that of other providers will also result in better integration and coherency within the tertiary education system.

Recommendation 53
The Commission recommends that, before an ITO is recognised: a) it be demonstrated to the Minister, on the advice of the TEC, that the recognition of such an ITO is desirable in the interests of the industries involved and the tertiary education system; and b) it be demonstrated to NZQA that the proposed ITO would meet the requisite quality standards.

Recommendation 54
The Commission recommends that, for any ITO to alter the scope of its recognition or merge with another ITO, a three-part process be instituted: a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, prior to an application for quality assessment being lodged with NZQA; b) it be demonstrated to NZQA that the ITO (or the proposed merged entity) would meet the requisite quality standards for the new scope of recognition; and c) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the interests of the industries involved and the tertiary education system. The Commission believes it is important that the distinctive role and functions of ITOs continue to be recognised in a more integrated and coherent system. While the same general policy principles should apply to education providers and to ITOs, the distinct focus of ITOs on standards setting and the management and facilitation of education and training systems should be retained.

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ITOs are currently defined in s2 (Interpretation) of the Industry Training Act 1992, which states: Industry training organisation means a body corporate for the time being recognised under section 5 or section 8(1) of this Act. ITOs are recognised by the board of Skill New Zealand, under the provisions of s5 of the Industry Training Act 1992, which states: Subject to section 6 of this Act, the Board may, by notice in the Gazette specifying the name of the body and the industry in respect of which it is recognised, recognise in respect of any industry any body corporate that applies to the Board to be recognised in respect of that industry.

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Recommendation 55
The Commission recommends that current legislative limits on the funding of the delivery of training by ITOs (as opposed to the development of arrangements for the delivery of training) continue. With this proviso, the Commission believes that the activities of ITOs should be profiled alongside those of providers, so that an overall picture of the pattern of education and training (both on-the-job and off-the-job) is possible.

Recommendation 56
The Commission recommends that, in terms of the proposed functional classifications, an ITO have its activities classified as industry or professional education and training for the purposes of negotiating charters and profiles.

7.1.4 Government Training Establishments

The statutory provisions relating to GTEs are sparse. They are confined to s159 (Interpretation) of the Education Act 1989, which states: Government training establishment means any establishment that is (a) A Crown entity (within the meaning of the Public Finance Act 1989) for the time being approved by the Minister for the purposes of this definition; or (b)A Department (within the meaning of the Public Finance Act 1989) for the time being approved by the Minister for the purposes of this definition; or (c) The New Zealand Defence Force constituted by Section 11(1) of the Defence Act 1990; or (d) The New Zealand Police. It is important that the role of GTEs be reviewed within the context of the steering framework and central structures proposed in this Report. The relationship between GTEs, TEIs, and ITOs also needs to be carefully considered in order to ensure coherence of policy, adequate specialisation and concentration, and effective linkages between them.

Recommendation 57
The Commission recommends a review be undertaken of the role and function of government training establishments (GTEs), to better integrate them with the rest of the tertiary education system.

7.2: Application of Protected Terms

Certain terms used to describe tertiary education providers are currently protected in statute. The purpose of this protection is to assist learners and the wider community (including the international community) in understanding the role or roles of a particular organisation. Currently the terms university, polytechnic, and college of education are protected terms. These correspond to three of the four types of TEIs, but it is possible for other providers to use these terms if they meet the requisite quality criteria (under s264 of the Education Act 1989). Whether non-TEIs should have the right to use protected terms is an issue that has ramifications for the system as a whole. This being so, the Commission believes that the granting of the right to use a protected term should be made by the Minister on the advice of the TEC. Furthermore, if protected terms are to carry out a clarification role (rather than being used to control access to a particular status), then the use of such terms must be rigorously evaluated to determine whether the provider in question actually meets the statutory definitions of those terms.

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Recommendation 58
The Commission recommends that, before the right to use a protected term is granted by the Minister on the advice of the TEC, the provider in question demonstrate not only that it meets the requisite quality standards, but also that such action is in the best interests of the tertiary education system as a whole.

Recommendation 59
The Commission recommends that those providers which have been granted the right to use protected terms (including both TEIs and non-TEIs) be able to demonstrate that they are continuing to meet the requisite quality standards, as a part of existing quality-assurance processes. There are good reasons for retaining the protected terms university and polytechnic. As stated above, protected terms are important for conveying to learners (both within New Zealand and internationally) a clear understanding of the roles of particular types of institutions and it is necessary to safeguard the reputation of institutions which make use of those terms. The Commission has recommended (in Recommendation 51) that there no longer be a separate institutional type called college of education. As a result, the Commission does not believe that there are good reasons for continuing to protect the use of this term.

Recommendation 60
The Commission recommends that the following terms continue to be protected in legislation: university; and polytechnic. Increasingly, significant numbers of polytechnics are using the term institute of technology to describe their institution. The Commission believes that if protection is to be continued for the term polytechnic, then it would logically follow that it would make sense to also protect the term institute of technology as a synonym for polytechnic. The term wananga is not currently a protected term. This has resulted in a wide range of organisations making use of this term without necessarily demonstrating that they meet the statutory definition. The Commission believes that it is important that the role and function of wananga, as defined in the Education Act 1989, is preserved and enhanced. Given, however, that the term wananga has largely entered common usage, seeking to make it a protected term would involve considerable difficulties. Instead, the Commission recommends that the term whare wananga be protected, using the definition currently set out in the s162(4)(b)(iv) of the Education Act 1989.

Recommendation 61
The Commission recommends that two new terms be protected in legislation: institute of technology as a synonym for polytechnic; and whare wananga. The Commission is not proposing that the term specialist institute or college be protected. It is anticipated that institutions established within this proposed institutional type will be described by a variety of terms that reflect their specialist nature. In the remainder of this section (Section 7.2), the Commission discusses some additional issues that have arisen in connection with protected terms.

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7.2.1 University
The Commission believes that the current definition of a university59 continues to be appropriate. In Section 8.5.2, the Commission examines proposals for additional or new types of universities which might use alternative definitions. It has concluded that all providers who wish to make use of the term university should be required to meet the current statutory requirements particularly its role as critic and conscience of society irrespective of what other special characteristics or mission a particular university might have.

Recommendation 62
The Commission recommends that a university be required to meet the requirements currently specified in s162(4)(a) & (b)(iii) of the Education Act 1989. It is still possible, however, for there to be variations in the special character and mission of universities within this broad definition. The Commissions proposal is that this could be reflected in the functional classifications of universities, and therefore in their charters and profiles. Thus, while all universities would have their activities classified as comprehensive teaching and research (in terms of the proposed functional classifications), they could also have some of their activities classified within other functional classifications.

Recommendation 63
The Commission recommends that, in terms of the proposed functional classifications, a provider using the protected term university have its activities classified as comprehensive teaching and research. In addition, a university might have some of its activities classified as: specialist teaching and research; industry or professional education; and/or community education and training. This will allow for differentiation within a university, but will require all providers using the term university to meet the statutory requirements.

Focus on post-graduate education

Element three of the Commissions high-level strategy is to facilitate greater specialisation and concentration, to promote excellence. Given this, and the statutory role of universities, the Commission believes that universities should remain the primary providers of post-graduate education (and the research which supports it). There will, however, be areas outside of the universities in which other providers have both the particular expertise and the requisite critical mass and research base and so it will be appropriate for those providers to offer post-graduate programmes. While universities should remain the primary provider of post-graduate education, they should also collaborate with other providers of post-graduate education who have the required expertise, critical mass, and research strengths. This is an integral part of the Commissions strategy of encouraging linkages within the system in order to promote both access and excellence.

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The term university is defined in s162(4)(a) and s162(4)(b)(iii) of the Education Act 1989, which state: universities have all of the following characteristics and other tertiary institutions have one or more of those characteristics: They are primarily concerned with advanced learning, the principal aim being to develop intellectual independence: Their research and teaching are closely interdependent and most of their teaching is done by people who are active in advancing knowledge: They meet international standards of teaching and research: They are a repository of knowledge and expertise; They accept a role as critic and conscience of society. and A university is characterised by a wide diversity of teaching and research, especially at a higher level, that maintains, advances, disseminates, and assists the application of, knowledge, develops intellectual independence, and promotes community learning.

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Recommendation 64
The Commission recommends that universities remain the primary providers of post-graduate education; and that universities be encouraged, through the profiling system, to co-operate and collaborate in the overall provision of postgraduate education and in the conduct of research.

Recommendation 65
The Commission recommends that where providers, other than universities, can demonstrate that they have the expertise, critical mass, and intensity of research required to support post-graduate programmes they be permitted to offer these programmes; and that the profiling system be used to encourage them to co-operate with universities (nationally or internationally).

Specialisation and linkages

The steering framework should be used to encourage universities to focus on their core mission, and to discourage them from undertaking activities that can be carried out more effectively by other providers. On the other hand, it should also be used to encourage universities to work with other providers in delivering university programmes, in cases where doing so would assist access. This type of collaboration will be particularly important in improving regional access to degree-level education of the requisite standards. The profiling and funding systems will need to provide rewards and incentives for those universities that focus on their mission and collaborate in the ways desired.

Recommendation 66
The Commission recommends that universities be encouraged, through the profiling system, to concentrate on their core mission, namely the delivery of degree programmes and the conduct of research; and that they be discouraged from offering programmes which unnecessarily duplicate those of other providers.

Recommendation 67
The Commission recommends that the profiling system be used to encourage universities to co-operate and collaborate with non-university providers in the regional provision of education and training, particularly at degree level.

7.2.2 Polytechnic/Institute of Technology

The Commission wishes to reaffirm the existing statutory definition of a polytechnic (or institute of technology).60 This definition clearly identifies the role of polytechnics as covering a broad range of activities including research (and particularly applied and technological research). The Commission believes that this broad role is, in general terms, appropriate.

Recommendation 68
The Commission recommends that a polytechnic or institute of technology be required to meet the requirements currently specified in s162(4)(b)(ii) of the Education Act 1989. The very breadth of this definition, however, creates difficulties in recognising differences between individual polytechnics, in terms of their respective roles and the ways in which they respond to the particular needs of the regions and communities they serve. It also creates difficulties for the funding systems ability to respond appropriately to these differences.

60

This is currently set out in s162(4)(b)(ii) of the Education Act 1989, and states: A polytechnic is characterised by a wide diversity of continuing education, including vocational training, that contributes to the maintenance, advancement, and dissemination of knowledge and expertise and promotes community learning, and by research, particularly applied and technological research, that aids development. (It should be noted that, in this section of the Report, the terms polytechnic and institute of technology are used interchangeably.)

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The Commission therefore proposes that the functional classification system be used to enable differentiation within the broad category of polytechnic. While all providers using the terms polytechnic or institute of technology would still have to meet the statutory definition set out in s162(4)(b)(ii) of the Education Act 1989, it would be possible to identify (and reward) individual polytechnics for their particular roles and focus.

Recommendation 69
The Commission recommends that, in terms of the suggested functional classifications, a provider using the protected term polytechnic or institute of technology have its activities classified as: comprehensive teaching; community education and training; and/or industry or professional education and training (in at least four fields). In addition, a polytechnic or institute of technology might also have some of its activities classified as: learning and assessment support; specialist teaching; and/or specialist teaching and research (in areas where the polytechnic or institute of technology offers post-graduate programmes).

Specialisation and focus

The Commission believes it is important that polytechnics focus their efforts on their areas of specialisation, and that they be discouraged from undertaking activities that are more effectively carried out by other providers. The profiling and funding systems will need to provide rewards and incentives for polytechnics to concentrate on their mission and areas of specialisation.

Recommendation 70
The Commission recommends that polytechnics be encouraged, through the profiling system, to concentrate on their mission, namely vocational education (including relevant degree-level education), community education, second-chance education, and research with an applied or technological focus; and that they be discouraged from offering programmes which unnecessarily duplicate those of other providers. The Commission is aware that, in some activities, the expertise and focus of polytechnics legitimately involves degree-level and post-graduate-level learning and research. This should be recognised by the profiling system.

Recommendation 71
The Commission recommends that polytechnics be encouraged to focus their degree offerings in areas where they have a specific concentration of expertise and intensity of research, and where there are particular industry needs.

Linkages
The Commissions view is that the strength of polytechnic degree programmes particularly at post-graduate level would be enhanced by building linkages with universities and other research institutes. These linkages, however, must be built in a manner that recognises the distinctive purpose and nature of polytechnic degree programmes. The Commission is aware that there are difficulties in developing such linkages in the current environment, but anticipates that its proposed steering framework will create a better environment for this form of collaborative activity.

Recommendation 72
The Commission recommends that the profiling system be used to encourage polytechnics to offer post-graduate programmes only in collaboration with a university or research institute (nationally or internationally).

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The Commission believes that polytechnics, particularly those in regional areas, have a crucial role to play in providing access to tertiary education. The Commissions view is that this should be done in a way that encourages regional polytechnics to collaborate with other providers in providing the widest range of learning opportunities in a cost-effective and high-quality manner without necessarily developing and supporting a full range of programmes internally.

Recommendation 73
The Commission recommends that the profiling system be used to encourage polytechnics with a regional focus to base most of their programmes on the needs of their particular region, and to co-operate and collaborate with other providers to enable access to education and training for those in their region.

7.2.3 Whare Wananga

The Commission believes that it is necessary to recognise and protect the activities of providers carrying out activities covered by the current definition of wananga.61 Because of the generic use of wananga by both Maori and other providers, the Commission accepts that this term cannot be protected. It proposes instead that the term whare wananga be protected, to cover this type of provider.

Recommendation 74
The Commission recommends that a whare wananga be required to meet the requirements currently specified in s162(4)(b)(iv) of the Education Act 1989. Providers using this protected term of whare wananga will have their activities classified under the functional classification of akoranga Maori. They will also be able to negotiate the use of other functional classifications that are appropriate to the range of educational services they offer.

Recommendation 75
The Commission recommends that, in terms of the suggested functional classifications, a provider using the protected term whare wananga have its activities classified principally as akoranga Maori. In addition, a whare wananga may have some of its activities classified within other relevant classifications. While a range of providers will be able to classify some or all of their activities as akoranga Maori, the Commission strongly supports the view that Maori should play a central role in determining which providers meet the statutory criteria for being defined as a whare wananga.

Recommendation 76
The Commission recommends that processes be established by the TEC to enable Maori to play a central role in determining which providers meet the statutory criteria for being defined as a whare wananga. Currently, wananga may only be established as TEIs. But a protected term such as whare wananga can apply to both public and non-public providers who meet the required definition. This will enable whare wananga to be either public institutions or private/community providers owned by whanau, hapu, iwi, urban Maori authorities, or other Maori organisations and this may assist in the resolution of issues of tino rangatiratanga. Legislative change will be required to protect the term whare wananga.

61

The term wananga is defined in s162(4)(b)(iv) of the Education Act 1989, which states: A wananga is characterised by teaching and research that maintains, advances, and disseminates knowledge and develops intellectual independence, and assists the application of knowledge regarding ahuatanga Maori (Maori tradition) according to tikanga Maori (Maori custom).

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Recommendation 77
The Commission recommends that the protected term whare wananga may be applied to either a TEI or a private/community tertiary education provider. In the light of all this, it may be desirable to examine the status of those providers currently established as wananga.

Number of whare wananga

The Commission believes that investigating the issue of the appropriate number and spread of organisations carrying out the function of whare wananga is a matter of high priority. There has been little policy development in this area since the creation of the category of wananga in the Learning for Life reforms. The learning needs of Maori require urgent attention, and it is vital that consideration is given to the role that whare wananga can play in this.

Recommendation 78
The Commission recommends that priority be given to a review of the role of whare wananga in meeting national, local, hapu and iwi needs, including a consideration of the adequacy of current provision.

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Chapter 8: Using the Steering Framework to Shape the System

There will be continuing evolution of the mix, nature, form, and location of tertiary education provision needed to meet both the major social and economic changes identified in Chapter 3 and the tertiary education systems broad strategic objectives. For this reason, the Commission does not believe it is possible to define a fixed shape for the tertiary education system. Rather, the Commission considers that when the improved central structures and steering instruments recommended in this Report are implemented, the tertiary education system will be able to be managed using an approach that better enables active engagement by stakeholders and recognises the distinctive roles of the different parts of the system. This process of organic change is implicit in the integrated approach the Commission is aiming for in both the development of the steering framework and its application to the system as a whole. The mix of systems and partnership approaches implies an overall system that is dynamic. The application of the integrated steering framework described in this Report provides a real opportunity to influence behavioural change in the tertiary education system. This chapter explores how some of these behavioural changes may be encouraged and managed.

8.1: Allocating Funding

The Commission believes the responsibility for overseeing the operation of the profiling system should reside with the TEC. One of the TECs primary tasks when negotiating the contents of profiles with individual chartered providers will be to determine which of their activities will receive public funding. The Commission has recommended (in Chapter 6) that profiles should not be used to prevent providers from offering programmes or carrying out activities. But in the continuing climate of scarce resources that the tertiary education system is likely to have to operate within, the impact of decisions not to fund activities will be considerable. The Commissions concern in these circumstances is to ensure that the allocation of funding is made in a principled and consistent manner, and that it supports the objectives of the steering system and the tertiary education strategy. The Commission is therefore of the view that it is essential for the TEC to use clear statutory criteria when it determines the allocation of funding.

8.1.1 Possible Statutory Criteria

The Commission has not finalised its views on the statutory criteria that the TEC should use in determining whether or not to fund particular programmes or activities offered by chartered providers. Key considerations for possible statutory criteria are: the Governments strategic objectives and priorities in relation to tertiary education and research within the tertiary education system; and the efficient and effective allocation of resources, including opportunities for more efficient and effective provision through co-operative or collaborative arrangements between two or more providers (or organisations outside the tertiary education system). In addition, the following criteria might also be considered: the current and expected future level and pattern of student demand (including the implications of demographic trends); the current and expected future needs of the society and economy (including expected changes in workforce requirements); the contribution of the provider to the sustainable prosperity of the nation;

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the provision of equitable and affordable access to a comprehensive range of educational and training opportunities; the fulfilment of the providers obligations under the Treaty of Waitangi; the maintenance of a high level of institutional autonomy; the enabling of flexibility and responsiveness to the diverse needs of stakeholders; the maintenance of a vibrant, dynamic, innovative, and internationally oriented tertiary education system; the development and maintenance of a fair, inclusive, and democratic society enriched by our natural and cultural heritage; the maintenance of an appropriately differentiated system, in which the provision of particular programmes is consistent with the statutory role of the providers in question; and the financial, educational, and research performance of providers. The Commission has also considered, but not finalised, its views on the manner in which such criteria should be applied including the extent to which there should be a presumption in favour of funding the qualityassured programmes and activities of chartered providers. Such a presumption would reduce the impact of profiles on autonomy and academic freedom, and reduce compliance costs; but it might undermine the ability of the TEC to steer the system in a way that responds the problems identified in Chapter 2. The Commission will consider further the issue of the appropriate statutory criteria, and their application, in its later reports.

Recommendation 79
The Commission recommends that the TEC base its determination of whether or not to fund particular programmes and activities (as stated in the profiles of chartered providers) on clear statutory criteria.

8.1.2 Implications for the Funding System

Under a profiling system of the kind the Commission is recommending, the TEC will need a reasonable degree of discretion in allocating funding and it will certainly need more flexibility than has been possible under the strongly demand-driven systems that New Zealand has operated in recent years. Accordingly, it may be necessary to establish funding mechanisms (or pools) that are separate from studentload considerations. These might include: targeted funds to help establish or expand priority activities that are costly or that have gaps in provision; funds to support centres or networks of excellence (in teaching and/or research); and funds for research that are based on assessed performance rather than student demand. These issues will be covered in the Commissions later reports.

8.2: Assuring Quality

The Commission has not addressed the issue of quality assurance in depth in this Report. The proposed profiling system, however, will have important implications for the quality assurance of tertiary education providers. Quality assurance will continue to be an essential part of many of the key decisions within the profiling system, and all recognised providers will be required, as at present, to be quality-assured. Under the new steering framework, the quality-assurance system will need to verify that providers are fulfilling the aspirations and obligations set out in their charters and profiles. The Commission believes that there should be ongoing quality assurance of providers in relation to any protected terms that they are using. This is essential for the validity and usefulness of these terms. As previously argued, the Commission believes that, as a matter of principle, quality-assurance activities should be separated from decision making on the allocation of funding. This means there must be a clear separation between the bodies responsible for these two activities (although the relevant bodies will need to co-operate in an appropriate manner).

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Recommendation 80
The Commission recommends that progress continue on the harmonisation of processes operated by NZQA and other qualityassurance bodies, to improve the consistency of quality assurance across the tertiary education system.

Recommendation 81
The Commission recommends that the validation of providers performance in relation to their charters and/or profiles form a key component of the quality-assurance processes of NZQA and other quality-assurance agencies.

8.3: Establishment, Recognition, and Change of Provider Status

The steering framework should assist the organic growth and development of the tertiary education system by bringing about desirable changes in the number, type, and distribution of providers. This process requires careful management to ensure that any changes in provider status, type, or distribution consider third-party effects that may be involved and determine whether the changes are in the interests of the system as a whole. It was suggested in a number of submissions to the Commission that it should recommend limits on the numbers in particular types or categories of provider. The Commissions view is that such an approach is mistaken, for two reasons. Firstly, there is insufficient information or research to enable the Commission to make rational decisions about the appropriate number of a particular type of provider. This is not to say that such a judgement could not be made, given improved information and systems that would support the making of such judgements on the basis of research and careful analysis. Many of the Commissions recommendations in this report are aimed at providing just this sort of information. Secondly, the Commission is very aware that the particular context and circumstances of individual providers, and the communities and stakeholders they serve, vary considerably within broad types of provider. Even if a general principle could be established on the desirability of limiting the numbers of providers of a particular type, it would still be essential for each proposal to be considered on its merits: there are likely to be important factors that vary between cases and that warrant serious consideration. As the study of teacher education (in Appendix 5) demonstrates, duplication of programmes often involves complexities such as diversification in the nature, form and content of the programmes, differences in delivery style and mode, and responses to emerging and changing needs.

Recommendation 82
The Commission recommends that there be no a priori limit on the number of providers of a particular type; and that decisions on particular proposals for the establishment of new TEIs, changes in TEI status, or the funding of non-TEIs be made on a case-by-case basis that takes into account the relevant statutory criteria.

Recommendation 83
The Commission recommends that the TEC initiate reviews of provision within the tertiary education system in priority areas; and that it make recommendations to the Minister and to providers on any actions necessary to alter the nature or amount of provision. The Commissions view, therefore, is that there should be a consistent approach to decisions such as establishing a new TEI, promoting or permitting the change of status of a TEI, or recognising other forms of provider (for funding or other purposes). This approach should be based upon the tests of quality and desirability. Desirable changes are those that will enhance the system as a whole and meet the needs of the Government and other stakeholders.

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Mergers of institutions that require a change of institutional type also need to be considered in this context. A considerable amount of work is required to merge two institutions of different institutional types and so any plans for a merger should be preceded by a preliminary independent view of the desirability of the merger and an assessment of whether the merged entity would meet the requisite quality criteria. It is also the Commissions view that decisions of this nature about TEIs should lie with the Minister, on the advice of the TEC. To provide this advice, the TEC would use information gathered as part of the profiling process.

Recommendation 84
The Commission recommends that, before any new TEI is established by the Government: a) it be demonstrated to the Minister, on the advice of the TEC, that the addition of such a provider is desirable (that is, it is in the best interests of the tertiary education system and the nation as a whole); and b) it be demonstrated to NZQA that the proposed TEI would meet the requisite quality standards.

Recommendation 85
The Commission recommends that, for any TEI to change its institutional type (or merge with another institution of a different type), a three-part process be instituted: a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, before an application for quality assessment can be lodged with NZQA; b) it be demonstrated to NZQA that the TEI (or the proposed merged institution) would meet the requisite quality standards for the proposed institutional type; and c) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the best interests of the tertiary education system and the nation as a whole. The recognition of non-TEIs (whether private or community tertiary education providers, GTEs, or ITOs) for funding purposes should follow similar principles. This would mean asking whether it is desirable, or in the best interests of the tertiary education system as whole, to fund some or all of the activities of these providers. It would require careful balancing of the stakeholder interests that the provider sought to address, against the wider national interest.

Recommendation 86
The Commission recommends that the recognition of non-TEI providers continue to be based upon the provider meeting the requisite quality standards; and that decisions on public funding (for all or any of their activities) be at the discretion of the TEC, once a charter for the organisation has been approved by the Minister.

8.4: Accountability and Governance

8.4.1 Accountability
The Commissions proposed steering framework will require a robust system of accountability. It will be necessary for the TEC to have the capability to monitor effectively the implementation of charters and profiles. All chartered providers will be required to report against their charters; and reporting against profiles will replace existing accountability measures. These reporting requirements for chartered providers will mean that the TEC has information available for evaluating the financial viability of these providers. So the TEC will be able to act proactively, in situations where a provider is financially vulnerable rather than after the fact.

8.4.2 Governance
The Commission has investigated a wide range of issues relating to the governance of TEIs, and a further range of issues relating to the governance and accountability of other providers and organisations (including ITOs).

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Before it makes detailed proposals on governance, however, the Commission wishes to further consider the issues it has identified so far. It will do this once it has considered the Governments response to the recommendations in this Report, the Governments recent proposals for changes to the accountability of TEIs, and the findings of both the industry training review and the adult and community education working group. The Commission will make recommendations on both governance and accountability in its future reports.

8.5: Examples of the Application of the Steering Framework

In determining how to shape the tertiary education system, the Commission has considered a number of specific issues about new and existing provider types. This has given the Commission the opportunity to test the application of the steering framework and the integrated approach that it has developed in this Report.

8.5.1 The Role of Colleges of Education

As the Commissions study of the growth in teacher education provision has highlighted, colleges of education are no longer the exclusive or primary providers of teacher education programmes.62 This raises questions about the education of teachers: what should be taught, and who should provide it? It also raises questions about the continuing need for specialist teacher-education providers and the role they play in the tertiary education system as a whole. There is some support for the view that all programmes of teacher education should take place within universities. It can be argued that teacher education is best provided in a critical and research-based culture, not only for the study of professional education but also for the study of subjects (such as science, history, and literature) that constitute the content of teaching at all levels of schooling. It can also be argued that teachers in training should mix with others training for various professions, rather than being isolated on their own campus with their own social and recreational facilities. On the other hand, there are also arguments in favour of free-standing colleges of education that teachers in training need to be taught in a milieu which models that of schools: where classes are small, the learner is central, and subjects are presented to meet the needs of individual learners. It can also be argued that teachers need to be taught the content of their programmes in terms of the particular tasks they face that is, in transmitting cultural heritages in a form to be assimilated by immature minds. Universities, it is argued, present subjects in a pure form that is often irrelevant to the task of teachers. The Commission is conscious of the fact that in many English-speaking countries all teacher education has been conducted traditionally in universities. There are, however, models in Europe of highly successful colleges standing alone. In applying a systems approach to the issues and asking how the objectives of collaboration, specialisation and linkages can best be addressed, the Commission has considered a number of issues.

Universities as lead organisations

Universities, with their diverse subject offerings and strong research culture, should take a leadership role in promoting teacher education. The TEC, through the process of negotiating charters and profiles, will require universities who seek acknowledgement of such a leadership role to demonstrate how they would recognise the substantial expertise in teacher education that has been developed over many years by colleges of education, as well as the innovative programmes provided by polytechnics and other providers. Such recognition could include co-operative programme development and research. The Commission also believes that those universities who offer pre-service teacher education programmes should examine how they can best utilise their resources to develop and support teacher education programmes suited to the needs of a knowledgeable and critical-minded workforce and citizenry in the 21st century. This examination should inform not only the programmes of those universities, but also teacher education programmes more generally.
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See Appendix 5.

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Specialist institutions
The Commission has recommended (in Recommendation 49) the introduction of the new category of specialist institute or college. Specialist providers of this nature would have their activities classified under the functional classification of specialist teaching. They would be encouraged to demonstrate how they might link with other providers and researchers through their charter and profiles. The Commission considers that such specialist providers should develop strong collaborative and co-operative links with other disciplines and other providers, to supply the appropriate context for learning and (where relevant) research. The TEC, through the process of negotiating charters and profiles, could ensure close collaboration of institutions rather than forcing mergers that may turn out to be problematic or unsuccessful. In the Commissions view, a single policy prescription will not meet the needs of the tertiary education system as a whole. Nor will it address the issue of the future of each of the existing colleges of education. The Commission believes that colleges of education, along with other specialist institutes or colleges, can be operated as stand-alone providers where there are good reasons for doing so. The Commissions conclusion is that the existing colleges of education should examine how they can best support the maintenance and delivery of high-quality teacher education within the regional and community needs they serve, while still reflecting their individual special character, mission, and philosophy.

Recommendation 87
The Commission recommends that the existing colleges of education consider the full range of options for co-operation, collaboration, or merger with other providers, particularly universities. Given the complexity of the issues associated with this area of learning and research, the Commission believes that a comprehensive review of teacher education is required. This is made more urgent by findings in recent international literature, which indicate strongly that the length and quality of teacher education is the best predictor of student achievement in schools, and by the Governments intention to set up an Education Council.63 One of the requirements for the proposed Education Council will be the setting of guidelines to ensure that all programmes of teacher education are of a high standard and in line with the increasing demands on schools to provide diverse programmes such as technological education and values education. There will, of course, also be the continued need for a strong scientific and cultural base, for understanding of environmental issues, for mental and physical health, and for involvement in the performing arts. The Commission believes that further work should be undertaken, possibly by the TEC in conjunction with other agencies, on the nature, form, and spread of the provision of teacher education.

Recommendation 88
The Commission recommends that a review be undertaken of the future shape of pre-service teacher education provision, taking into account international literature on teacher education, the role of the proposed Education Council, and the longterm needs of the school and early childhood education systems. Irrespective of the findings of such a review, the Commission believes that, given the importance of teacher education for the education system as whole, it is essential that all providers of teacher education co-operate and collaborate to ensure the relevance, quality, and spread of provision.

Recommendation 89
The Commission recommends that all providers of teacher education programmes be encouraged, through the profiling system, to co-operate with each other in the development and review of teacher education programmes.

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Education Amendment Bill (2) 2000.

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8.5.2 Possible New Forms of Universities

Up until 1990, degrees could be conferred only by universities. The Learning for Life reforms made provision for degrees to be awarded by non-university providers. Processes were established so that degrees and their providers could be quality-assured by panels that were established by NZQA and that contained representatives from universities. Polytechnics (and other non-university degree providers) maintain that their degree programmes are of a standard comparable to those offered by universities. They believe that NZQA has insisted on appropriately high standards and that polytechnic degrees, while to some extent different, are of equal worth to those offered by universities. Notwithstanding this, there are concerns that the degrees offered by polytechnics do not enjoy the same status or parity of esteem as those offered by universities. This, it is claimed, has had a number of negative consequences. For one thing, it means that polytechnic students may not fare as well in the labour market as their university counterparts. For another, polytechnics believe that they are at a disadvantage, relative to universities, in attracting international students. Concerns of this nature have generated a number of suggestions for changes to the current legislative arrangements for universities. Two such changes deserve particular attention. The first is a proposal, advanced by UNITEC (Submissions 71 and 142), for the creation of a new category of university that is, a university of technology. The second is a proposal, advanced by the Association of Polytechnics in New Zealand (APNZ; Submission 100), for the creation of a new national university that would be called the New Zealand University of Technology and that would approve and award higher-level non-university qualifications. The cases for and against each of these proposals are outlined below.

A new category: university of technology

The Commission has evaluated this proposal using the instruments outlined in this Report. The Commission has focused on the issue of the desirability of a new category of university. As the Commission has emphasised, the issue of whether a particular provider might meet the quality test for such a new category is a separate matter. To determine the desirability of including a new category of university of technology as a protected term and/or a legal form, the Commission has evaluated the proposal by looking at its impact on the tertiary education system as a whole and at its ability to contribute to the broad objectives of the system as described in this Report. In its submission, UNITEC describes the special character and mission of a university of technology as an institution focused on providing a comprehensive and varied range of programmes. The qualifications have a vocational emphasis and its research is of an applied nature. Compared with a traditional university, universities of technology would have a smaller proportion of post-graduate students and a correspondingly larger range of diploma, certificate, and foundation programmes. UNITEC claims that the university of technology concept would contribute to the development of the tertiary education system as a whole by providing a means of differentiating between traditional research universities and applied universities of technology. Other contributions UNITEC claims the university of technology would make to the tertiary education system include: It would enhance differentiation in the tertiary education system, by improving the educational opportunities and the range of choices available to learners. At the same time, it would allow institutions to focus and specialise their activities by offering a distinctive style of education. It would improve access to tertiary education by offering staircasing and ongoing personal and professional development from foundation to post-graduate level in a way not possible in any other category of institution.

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It would provide a focus for applied and vocational education, and would be in a unique position to foster and respond to the needs of industry for an appropriately trained and educated workforce, and for relevant applied research and development partnerships. The Commission has evaluated the contributions (benefits) described in UNITECs proposal against possible adverse impacts on the system as a whole. This evaluation highlights the following points: To the Commissions knowledge, there is no separate statutory category of university of technology in any comparable jurisdiction. In other countries such as Australia, an institution cannot be called a university of technology unless it meets the normal criteria that apply to university status. The creation of two separate categories of university might have serious implications for the international standing of New Zealands higher education system. Given the current statutory criteria, there are likely to be serious difficulties distinguishing a separate category of university of technology from other kinds of university such as a research university. If a separately designated university of technology meets the current criteria in s162(4)(a) of the Education Act 1989, it is difficult to see how it constitutes a new category. If it does not, questions arise as to the legitimacy of using the term university in relation to the institution (or institutions) in question. Greater differentiation between universities could be achieved through functional classifications and other elements of the profiling system outlined in this Report. It does not require the creation of a new legal category. This Report recommends that the different roles of universities and polytechnics be recognised through the profiling system. If a new category of university were to be introduced, it is likely that a significant number of polytechnics would follow UNITEC in seeking this status. If they were successful, the status of polytechnics would be weakened, if not seriously undermined and this would have potentially negative implications for the learners whom polytechnics are designed to serve. The creation of a separate category of university of technology would not necessarily solve the parity-ofesteem issue. The UNITEC proposal might establish two grades of university and, in all probability, the universities of technology may, over time, seek to become research universities because these would be seen as having a higher status. It might also lead to two grades of polytechnics: those which became universities of technology, and those which did not. It is likely that the parity-of-esteem issue could be better dealt with through the development of stronger linkages and collaborative arrangements between universities and other providers in the system. These would be encouraged by the TEC, through the profiling process. The Commission believes that, on the basis of the UNITEC proposal, the establishment of a new category of university of technology would not meet the desirability test as set out in this Report. The Commission therefore does not recommend that a university of technology category be included in legislation.

Recommendation 90
The Commission recommends that a university might be termed a university of technology provided it meets the requirements of a university as set out in the Education Act 1989 and has a particular focus on industry or professional education and training. The Commission does not recommend that a separate legal category of university of technology be introduced.

A new organisation: New Zealand University of Technology

In considering whether to establish a new entity known as the New Zealand University of Technology, the Commission has once again applied the desirability test. Under the proposal advanced by APNZ, the New Zealand University of Technology (NZUT) would have its activities classified in the learning and assessment support category of the Commissions proposed functional

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classifications. Its special character would allow it to focus on approving programmes (mainly at the degree level), accrediting tertiary providers to deliver them, and awarding qualifications to programme graduates. The fact that the NZUT would, in many respects, duplicate the functions of NZQA raises concerns about the desirability of the proposal. The essential difference is that a qualification approved and awarded by NZUT would have the status of a university qualification. Under the APNZ proposal, any non-university provider offering a degree programme would have access to NZUT irrespective of what proportion of its total qualification portfolio comprises degree programmes. This would enable non-university degree providers to have access to a university brand without establishing a new provider. In this sense, NZUT would be a virtual university in the sense that it would not have its own dedicated academic staff or students. According to the APNZ proposal, the establishment of NZUT would have a number of benefits for the tertiary education system: It would create a university that has, as its primary mission, the provision of degree-validation services. Moreover, it is not in competition with providers seeking to have their qualifications validated. Its existence would thus remove the hurdles created as a result of the current power imbalance between universities and non-university degree providers. It would enhance learning opportunities and learner choice by directly addressing the parity-of-esteem issue. That is, it would enable students pursuing higher-level qualifications outside of universities to receive the same level of recognition for their qualifications as that afforded by institutions within the existing university system. Furthermore, this would be achieved without endangering the nature of the applied degrees currently offered by various polytechnics and other non-university providers. It would reduce the pressures for institutional drift, in the sense that there would be fewer pressures on polytechnics and other non-university degree providers to become universities in their own right. It would help preserve and enhance the differentiation between existing universities and other providers. It would enhance the ability of non-university degree providers to recruit international students. Again, the Commission has evaluated the benefits of NZUT against the impact it might have on the tertiary education system as a whole. This evaluation shows up some issues of concern: While NZUT could be recognised within the functional classifications of learning and assessment support, this would not make it automatically eligible for recognition as a university. NZUT would still need to meet the criteria for the award of this protected term, in order to protect the status of other universities. Although it is based on the model of the University of New Zealand (which ceased to exist in the early 1960s), NZUT would be a very different kind of institution it would not have affiliated colleges, and it would have no courses, academic staff, or research facilities of its own. Such a body would not meet the current legislative criteria for a university. Accordingly, the TEC would need to consider establishing NZUT as a separate category of university. This would be subject to the same kinds of objections that can be levelled against the UNITEC proposal. It is by no means clear that NZUT would solve the problem of institutional drift. Some polytechnics are likely to prefer being a university in their own right rather than having their degrees awarded by a separate body. Thus the proposal would not solve problems associated with categories, competition, coordination, or differentiation. The APNZ proposal seems to duplicate the activities of NZQA and it is unclear how this duplication would contribute to the system as a whole especially as not all polytechnics are in support of the proposal. The Commission believes that, on the basis of the APNZ proposal, the establishment of a virtual university of technology would not meet the desirability criteria. It therefore does not recommend the establishment of a New Zealand University of Technology.

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8.5.3 Other Options for Addressing the Parity-of-Esteem Issue

There is clearly no simple statutory solution to the parity-of-esteem issue. Qualifications offered by different types of providers are always likely to be seen by some as carrying a different status. Moreover, turning nonuniversity providers into universities will not solve this problem; it will simply create a more differentiated university sector with its own status hierarchy. The parity-of-esteem problem is thus likely to prove enduring. As it stands, non-university degree providers have a number of options available to them. They can offer their degree programmes under the current NZQA approval and validation arrangements. Alternatively, they can approach a university, either in New Zealand or overseas, and seek to have their degrees validated by this institution. For example: The Open Polytechnic has some of its degrees validated by the Open University in the United Kingdom; and Wanganui Regional Community Polytechnic has entered into an arrangement with Waikato University in which some degrees will be jointly awarded. Other options have been suggested to the Commission, including more collaborative partnerships between universities and non-university providers. One possibility, again raised by UNITEC, would be to facilitate the development of university colleges which would be established within non-university degree providers, and would offer programmes and activities in conjunction with a local university (Submission 142). Solutions from other countries include the concepts of foundation and professional degrees. These mechanisms recognise the relevance and orientation of these non-university degrees to the workplace; and, at the same time, they establish clear linkages to existing university qualifications. In some countries, professional degrees are offered only by universities. The Commission believes that options of this nature deserve further exploration, and intends to address them in its forthcoming reports.

Recommendation 91
The Commission recommends that further analysis be undertaken of the options for the validation of degree programmes offered by providers other than universities. The Commission does not recommend the establishment of a New Zealand University of Technology in the form currently proposed by the Association of Polytechnics in New Zealand.

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Chapter 9: Objections to the Commissions Proposals

The Commission is aware that the introduction of its proposals are open to a range of objections and may not be favourably received by some institutions and groupings within the tertiary education system. In this chapter, the Commission has identified some of these potential criticisms and has endeavoured to address them.

9.1: Academic Freedom

One possible objection is that the Commissions proposals, including the introduction of profiles, pose a threat to academic freedom. The Commission strongly endorses the principle of academic freedom as defined in s161(2) of the Education Act 1989. In accordance with this Act, academic freedom is taken to mean: a) the freedom of academic staff and students to question and test received wisdom, to put forward new ideas and to state controversial or unpopular opinions; b) the freedom of academic staff and students to engage in research; c) the freedom of the institution and its staff to regulate the subject matter of courses taught at the institution; d) the freedom of the institution and its staff to teach and assess students in the manner they consider best promotes learning; e) the freedom of the institution through its chief executive to appoint its own staff. It is the Commissions view that its proposals will have no negative implications for the ability of staff or students to exercise the freedoms specified above. The tertiary education system particularly the universities has had a traditional and important role as a critic and conscience of society. While this unfettered right to be critic and conscience is fundamental to democracy and academic freedom, it carries with it the corresponding responsibilities of sound research and ethical application of knowledge. None of the Commissions proposals interferes with, or hampers, this basic freedom and its associated responsibilities.

9.2: Autonomy
A related objection to the Commissions proposals is the concern that they may unduly affect institutional autonomy. By international standards, New Zealands tertiary education providers enjoy a high degree of autonomy or independence, both in terms of substantive autonomy (that is, the degree of choice over the nature of the activities undertaken) and procedural autonomy (that is, the degree of choice over how these activities are undertaken).64 Their autonomy, however, is conditional, and always has been. In relation to TEIs, the main limitations on substantive autonomy include the current powers of the Minister: to determine the contents of charters, and initiate amendments to them; to veto the provision of particular courses (where there are significant implications for the allocation of national resources); to determine the level of an institutions annual funding and to link any funding to the approval of an institutions statement of objectives; and to recommend the disestablishment of an institution. In terms of procedural autonomy, TEIs have considerable control over how they operate. They are, however, constrained in various ways by their governance and organisational structures (as specified in the Education

64

See Blakeman (1999); Blakeman and Boston (2000).

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Act 1989). Further, while the Government is unable to determine what is taught or how it is taught, it can influence the length of a course, and determine how many years a particular activity will be funded. The Commissions profiling proposals will undoubtedly have implications for the level of substantive and procedural autonomy. There are at least two reasons for this. First, as noted in Chapter 6 of this Report, it is proposed that the Minister make more extensive use of statutory powers to influence the contents of charters. The Commission is not proposing that these powers be extended. Nevertheless, the proposals outlined in this Report are intended to change the way in which providers operate, and will involve additional constraints and obligations. Secondly, tertiary education providers will be somewhat more constrained in relation to their activities, certainly in terms of the activities that they are funded to provide. Having said this, it should be remembered that the Government currently has the power to cap the number of funded places at each provider (both in relation to the aggregate number and the numbers in specific courses). These powers, however, have not been extensively used in recent years. In the Commissions view, the reduction in autonomy arising from the new steering framework is justified; however, the impact of the proposed changes must not be exaggerated. First, under the profiling system, providers will continue to enjoy a high level of substantive and procedural autonomy. Second, the proposals do not involve detailed micro-management of the tertiary education system, and any reduction in autonomy is likely to be relatively modest. Third, if the main powers in relation to the profiling system are placed in the hands of the TEC, there is little risk of the policy process being politicised or funding decisions being taken for political reasons. Finally, if somewhat greater constraints of the kind proposed in this Report are not introduced, many tertiary education providers are likely to find their autonomy limited in other ways. For instance, those TEIs that encounter serious financial difficulties will be obliged to seek assistance from the Government; in exchange, they will have little choice but to accept greater involvement by the Government in the determination of their objectives, plans and direction. It is also important to emphasise that programmes or activities which meet the appropriate quality-assurance standards will be able to be offered even in circumstances where, for one reason or another, the TEC has chosen to decline public funding. So it will be possible, as at present, for a provider to carry out nongovernment funded activities and secure the necessary resources from other quarters. Where the TEC decides not to fund a particular programme or activity, or to restrict funding for a particular programme or activity, it is envisaged that the relevant provider will have the opportunity to resubmit its bid (or submit a revised bid) after a specified time period.

9.3: Constraints on Political Action

The Commission has considered the argument that the TEC may weaken and diminish the power of the Minister to act effectively in the pursuit of the Governments objectives. There are two main points to consider here. First, the current policy framework constrains the Ministers capacity to act effectively to manage the tertiary education system. In some cases, the powers to act are limited or inadequate; in others, there is a risk that ministerial intervention will be subject to judicial review. The second point is that the Commission has been careful not to unduly constrain the Ministers capacity to act. For this reason, the Commission has recommended that certain important powers are retained by the Minister (and in some cases transferred to the Minister). The Commission has also recommended that the Minister be able to direct the TEC to provide advice or conduct research on any matters within its areas of responsibility. More generally, the Commissions proposals are aimed at developing a policy framework that will build a partnership between the Government, tertiary education providers and other stakeholders to steer the tertiary education system more effectively. This type of approach needs to strike a judicious balance between, on the

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one hand, the ability of the Government and the relevant Crown entities to influence the behaviour of providers, and, on the other, giving institutions enough autonomy for them to be responsive to local needs and learners interests. In the Commissions view, this balance is most likely to be maintained by a body that has some independence and autonomy from the Government that is, the TEC.

9.4: Effectiveness
The TEC will face a number of significant challenges in ensuring that the proposed steering framework operates in an effective manner and achieves its objectives. To start with, some providers may seek to thwart the goals of the profiling system by failing to supply relevant information, by ignoring advice, or by being uncooperative in other kinds of ways. Furthermore, the extent of the TECs influence will be largely dictated by its funding role. With most tertiary education providers receiving a significant proportion of their income from non-governmental sources, the TEC will have less capacity to influence behaviour in the system than was previously the case. Also relevant in this context is the continuing internationalisation of tertiary education, and the implications of this for competition within the system. These challenges should not be underestimated, but nor should they be exaggerated. What they do suggest is that, if the profiling system is to operate as the Commission intends, the TEC must be properly funded and staffed with people who have a detailed experience of the tertiary education system.

9.5: The Impact on Innovation, Responsiveness and Productive Efficiency

A steering framework of the kind envisaged could have the effect of slowing the pace of change in certain parts of the tertiary education system and making it more difficult, in some instances, for providers to respond rapidly to changes in the level or pattern of student demand. The Commissions view is that, if its steering framework is applied as intended, the new regime is likely to give providers greater ability to plan with confidence and to embark upon new initiatives. It should also offer added incentives for mutually beneficial partnerships. Potentially, therefore, the new regime offers the promise of a more innovative, forward-looking tertiary education system. Nor does the Commission believe that its proposed steering framework will have a detrimental impact on the overall responsiveness of tertiary education providers, whether in terms of responsiveness to students, business, community groups or the wider society.

9.6: The Impact on Administrative and Compliance Costs

There will inevitably be some transitional costs while charters are amended and the initial profiles are prepared and negotiated. Over the medium term, however, any additional costs should be relatively modest in nature. This is because much of the information that providers will be required to supply under the proposed regime is already available within the system (for example, in statements of objectives) and will not need to be generated from scratch. Also, if the TEC adopts a relatively light-handed approach, the negotiation of profiles should not prove to be an unduly arduous or time-consuming process.

9.7: Determining What to Fund

A critical feature of the steering framework is the proposal that the TEC will determine which activities within the tertiary education system will be funded and which will not. Directly related to this will be decisions on the level of funding for different activities and the number of funded places. Such a policy framework could be challenged on the grounds that those charged with making such decisions are unlikely to have the necessary information to make sensible judgements. Equally, even with robust information, it will often be difficult to determine when competition between providers is desirable and when it is not, or how a proposed new programme will affect other providers.

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These concerns are understandable and should not be passed over lightly. Nevertheless, several matters should be borne in mind. One of these is the fact that judgements of this nature are a feature of the current policy framework, even if only to a modest degree: there are caps on some activities, and there is a fixed number of providers of certain expensive courses. Admittedly, the Commissions proposals certainly involve an extension of this practice, but they do not entail any new exercise of administrative discretion. Equally important, the Commission believes that the policy changes recommended will provide a framework for improved central steering of the system. The exercise of discretion for tertiary education funding will be given to the TEC and the design of the system should, in principle, furnish a relatively stable and predictable framework for planning by providers. Further, the reporting framework should produce better information for those charged with oversight of the tertiary education system and allow discretion to be exercised in a more informed manner. Given the importance of funding issues, the Commission will address the problems of determining what to fund in its future reports.

9.8: Simpler, Cheaper Solutions

A final objection that warrants mention is the claim that there are simpler and cheaper ways of achieving the Commissions objectives for the tertiary education system. Some simpler (and possibly cheaper) solutions were suggested to the Commission as part of its consultative process. These ranged from curbing the number of universities, to merging the current polytechnics into five or six institutions, to cutting the funding of PTEs. There are various problems with suggestions of this nature: they tend to focus upon a part of the system and give inadequate attention to the inter-sectoral linkages; they often reflect sectoral interests rather than a concern for the system as a whole; and they tend to involve ad hoc and arbitrary decisions about the desired number and type of providers. Moreover, simple solutions, by their very nature, are unlikely to solve multifaceted patterns that arise in a complex, dynamic system.

9.9: The Need for Urgent Action

The Commissions recommendations may be criticised by some for not providing a rapid solution to immediate problems. As the Commission has noted, however, any changes to resolve the serious and complex problems facing the tertiary education system will take time to implement. The Commission is well aware of the compelling need to deal with these issues now and to do so in a manner that begins the process of longer-term change (which will address the underlying causes of the current problems). For this reason, the Commission has proposed the transition arrangements in the following chapter.

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Chapter 10: Transition Arrangements

If the Government agrees with the broad thrust of the Commissions recommendations, including the establishment of the TEC and the introduction of profiles, then the Commission believes that action should be taken now to begin the implementation of the recommendations outlined in this Report. This is because, although the Commissions recommendations focus on the long term, there are serious shortterm challenges that need to be confronted. Unless early progress is made on establishing a new steering framework and central structures, the problems identified in this Report will only be exacerbated. The Commission believes that, until the new powers and structures are established, the Minister should make use of existing powers (to the extent that this is possible) to begin to implement the changes outlined in this Report.

10.1: TEC Establishment Unit

An establishment unit should be set up to manage the transition from the existing steering structures to the TEC. The unit will do this in conjunction with TEAC, the Ministry of Education, and the State Services Commission.

Recommendation 92
The Commission recommends that a establishment unit be set up in early 2001 to begin the process of establishing the TEC; and that this unit work in conjunction with TEAC, the Ministry of Education, and the State Services Commission in implementing the recommendations in this Report.

10.2: Introduction of Interim Profiles

If the Government accepts the Commissions recommendations on profiles, an interim form of profiles should be instituted for the calendar year 2002. Interim profiles could build upon existing policy instruments, such as statements of objectives or relevant contracts, and progressively move towards the kind of profile recommended in this Report. These interim profiles would require providers: to state their contribution to the tertiary education system and to take account of their impact on it; to demonstrate responsiveness to the needs of their community, industry and business, and others outside of the system, and to build partnerships with them; to collaborate and co-operate with other providers; to collaborate in the establishment of networks of research excellence (where the provider is engaged in research including those delivering undergraduate degrees); to establish and implement processes for rationalising existing programmes and activities that fall outside the interim profile (particularly those programmes and activities established after 1 January 2001); desist from planning new offerings or activities outside their interim profile, unless negotiated with and agreed to by the Government; and include any other requirements that might apply either generally or to a particular type of provider. A variety of different legislative provisions could be used to introduce interim profiles. For TEIs this could either involve specifying changes to the content of statements of objectives (utilising s199(3) and s203 of the Education Act 1989), or specifying conditions in respect of the award of supplementary grants under s199(4). For PTEs and OTEPs, the Minister can simply specify the terms under which grants are made (s238A and s321 of the Education Act 1989). The Government could seek to have the principles underpinning profiles instituted for other funding systems through adjustments to the documents of accountability for Skill New Zealand. The negotiation of interim profiles would require the input of both the Ministry of Education and Skill New Zealand. It is likely that the TEC establishment unit would need to play an integrative and monitoring role in this respect, to ensure that the interim profiles were moving the system in the direction set out in this Report.

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Recommendation 93
The Commission recommends that interim profiles be introduced for 2002, with support from the TEC establishment unit in an integrating and monitoring capacity.

10.3: Re-Negotiation of Existing TEI Charters

The Commission recommends that the process of re-negotiating the charters of TEIs to reflect the directions outlined in this Report commence as soon as possible. The Commission recommends that the TEC establishment unit play a role in ensuring that this process advances the recommendations in this Report.

Recommendation 94
The Commission recommends that the process of re-negotiating TEI charters to implement the recommendations in this Report commence in 2001, with support from the TEC establishment unit.

10.4: Introduction of Charters for Non-TEIs

Currently PTEs and OTEPs that receive public funding are not required to have a charter. They do, however, enter into agreements that specify commitments similar to those contained in charters. The Commission believes that it would be advantageous to begin the process of negotiating charters with non-TEIs in 2001. This could be done by the Minister making use of the power under s238A(1) of the Education Act 1989 to recognise providers under that section for the purposes of funding. The Minister could make such recognition contingent upon negotiating a charter.

Recommendation 95
The Commission recommends that the process of negotiating charters for non-TEIs begin in 2001, with support from the TEC establishment unit.

10.5: Identification of Centres or Networks of Research Excellence

This Report recommends increased specialisation and concentration of research in the tertiary education system. One means of doing this is to recognise a number of centres or networks of research excellence. The Commission believes that this should be a matter of priority in the short term, and that the Government should give serious consideration to beginning this process in 2001.

10.6: Skill New Zealands Documents of Accountability

This Report recommends the disestablishment of Skill New Zealand, and the transfer of its responsibilities to the TEC. To address these transition issues, the documents of accountability between Skill New Zealand and the Ministry of Education, and Skill New Zealand and the Department of Work and Income, should be reviewed in early 2001. The TEC establishment unit should have a role to play in facilitating this review, and in the transition to the new arrangements. In this process, priority should be given to moving the funding and contracting arrangements for providers of industry training and second-chance education towards the directions outlined in this Report. In particular, it is essential that the transfer of second-chance education programmes, including both the Training Opportunities and Youth Training programmes, to the TEC involve their reconfiguration as genuine education interventions, which provide entry-level qualifications and work skills, improve literacy, and lead to further education and employment. Giving effect to these changes will also involve transfers from Vote: Work and Income to Vote: Education.

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Recommendation 96
The Commission recommends that the Skill New Zealand documents of accountability be reviewed in early 2001, with input from the TEC establishment unit, to enable the transition to the new central structures recommended in this Report.

10.7: Legislative Review

Implementing the changes recommended in this Report will require a significant number of legislative changes, not the least of which will be the establishment of the TEC. The Commission believes that these changes present an important opportunity to improve the comprehensiveness and coherence of legislation relating to tertiary education.

Recommendation 97
The Commission recommends that, as part of the examination of legislative changes necessary to implement the recommendations in this Report, a substantive review be undertaken of the tertiary education provisions of the Education Act 1989 (Parts XIII to XXV, and XXVII) and of the Industry Training Act 1992, with the objective of improving the coherence and comprehensibility of these provisions.

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Concluding Note: Need for Ongoing Review

Responding to the challenges of the knowledge society will require continuing change. But New Zealand and its peoples will want (and need) to retain continuity with the past, and will need to deal with the past as well as the future. Change for changes sake will not assist the development of a knowledge society but neither will continuity for continuitys sake. A careful and judicious balance between the two is essential. A major examination of the processes of change within tertiary education providers has noted: The challenges of institutional change presented by the new environment are daunting. For institutions to be successful, change must be both intentional and continuous. Colleges and universities undergo change all the time; only some of the change is intentional. Shifting student demand, budget shortfalls, and legislative mandates will produce any number of changes. But an intentional change requires strategies and behaviours that are quite different from those associated with unplanned change. Although intentional change is always subject to serendipity, it involves charting a deliberate course.65 The key is to find ways of charting intentional change that are responsive to challenges, and at the same time to preserve and transform (where necessary) that which is of value and benefit to New Zealand society, the New Zealand economy, and the environment. The lack of easily accessible information has made it difficult for the Commission to obtain a full and accurate picture of the tertiary education system as it currently exists. The Commission has also noticed a lack of forward-looking research on trends in post-compulsory education, and on workforce or communitydevelopment needs. Such a lack of information hampers policy development. Good decisions and good leadership require robust systems, along with information and input from a wide variety of sources. This is all the more so as social, economic, and environmental issues become more complex and as the amount and diversity of knowledge expands. Judgement implies that rational decisions can be made, based upon good information. In a knowledge society, such decision making is essential. The successful implementation of the Commissions recommendations will require a commitment by every stakeholder to participative leadership and careful judgement in policy making, implementation, and evaluation. In the Commissions view, this can only happen if the Government and the tertiary education systems stakeholders are willing to engage in continuing and iterative review.

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Eckel (et al) (1998), p. 1.

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Glossary of Education Terms and Acronyms

College of Education Accreditation Committee (CEAC) CEAC holds the authority delegated from the New Zealand Qualifications Authority (NZQA) for the approval and accreditation of non-degree programmes offered within member colleges. CEAC carries out this function for The Association of Colleges of Education in New Zealand (ACENZ) A standard unit of measurement of student enrolments. It is defined as a student workload that would normally be carried out by a full-time student in a single academic year. Government departments or Crown entities (other than TEIs) that have been approved by the Minister of Education and registered by NZQA as a tertiary education provider offering training subject to approval and accreditation requirements of the Education Act 1989. A full list of GTEs can be found in Appendix 4. Organisations that represent industries or industry sectors. They set skill standards, and arrange and manage (but do not provide industry) training. The Committee provides accreditation and programme approval services to polytechnics and institutes of technology for programmes other than degrees. The Association of Polytechnics in New Zealand (APNZ) is the parent body of the NZPPC. A subject-based classification system for courses at institutions that receive government funding.

Equivalent Full-Time Student (EFTS)

Government training establishments (GTEs)

Industry training organisations (ITOs) New Zealand Polytechnics Programmes Committee (NZPPC)

New Zealand Standard Classification for Education (NZSCED) New Zealand Vice-Chancellors Committee

The Committee represents the interests of New Zealands eight universities and was established by the Universities Act 1961, which replaced the federal University of New Zealand with separate institutions. Its subcommittee, the Committee on University Academic Programmes (CUAP), considers academic matters across the university system. These include inter-university course approval and moderation procedures, advice and comment on academic developments, the encouragement of the coherent and balanced development of curricula and the facilitation of crosscrediting between qualifications. A system of national qualifications developed by the New Zealand Qualifications Authority (NZQA) and based on unit standards. Organisations that deliver study programmes of some national significance and that are recognised by the Minister of Education under s321 of the Education Act 1989. Because the delivery of these programmes of study is in the national interest, OTEPs have a special relationship with the Crown. Defined in legislation as an establishment, other than an institution, that provides post-school education or vocational training and, in this sense, would include all providers other than TEIs. In practice, usually refers to private-sector organisations that provide tertiary education or training. They may receive some government funding.

National Qualifications Framework (NQF) Other tertiary education providers (OTEPs)

Private training establishments (PTEs)

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Skill Enhancement

Training aimed at young Maori and Pacific people aged between 16 and 21. The emphasis is on training for the workplace, with a minimum of training being conducted in the workplace. All involvement in post-school learning activities. It includes industry training and community education. Public-sector institutions that provide tertiary education. There are four kinds of TEIs defined in the Education Act 1989: universities, polytechnics, colleges of education, and wananga. TEIs are Crown entities, and are required to follow standard public-sector accountability processes. A generic term used for all institutions and organisations that provide tertiary education or training. A programme targeted at job seekers usually aged 18 or more, long-term unemployed people with low qualifications, people with disabilities, certain benefit recipients, refugees, ex-prisoners, and priority clients of Work and Income New Zealand. Training is designed to provide trainees with practical pathways to employment or further education. Programmes that offer a range of practical skills-training for school leavers, under 17 year-olds, students who have no more than two School Certificate passes, and students with no formal qualifications above Sixth Form Certificate. The training covers both job-specific and general workplace skills, and is linked to the National Qualifications Framework through unit standards.

Tertiary education

Tertiary education institutions (TEIs)

Tertiary education providers (TEPs) Training Opportunities Programme (TOP)

Youth Training

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Glossary of Maori Terms

Ahuatanga Maori Akoranga Maori tradition. Learning (as a noun). Derived from 'ako' which means both 'learn' and 'teach'. Maori learning. Localised sub-tribal but independent grouping based on a whakapapa link to a named ancestor. Politically, the term 'hapu' is representative of particular interests that are subsumed under Article 2 of the Treaty of Waitangi. Regionalised tribal grouping that may be constituted by several hapu; it is linked by whakapapa to a named eponymous ancestor. Also used as a generic term for 'people' (e.g. Iwi Maori = Maori 'people'; Iwi Pakeha = Pakeha 'people'.). Politically, the term 'iwi' is representative of particular interests that are subsumed under Article 2 of the Treaty of Waitangi. Marae protocol, as inherited from the ancestors and as (rigidly) set by an iwi or hapu. A socio-cultural construct denoting both the collective of tribal entities and the ethnic labelling of the indigenous people of this country. Technically it means 'normal', 'everyday', and 'native' which reinforces the notion of the indigenous. Politically, the term 'Maori' is representative of particular interests that are subsumed under Article 3 of the Treaty of Waitangi, and is used to augment urban Maori interests within national discourse. A generic and over-arching term for the learning and teaching nexus. Often used as a synonym for education. Thus, Matauranga Maori denotes the uniqueness of the learning and teaching nexus from a Maori perspective. A spoken dialect of the Maori language. A socio-cultural construct denoting New Zealanders of largely European (or British) origin. This term is not universally accepted in New Zealand society, and is a source of ongoing debate. In all discussions on race relations in New Zealand, the term 'Pakeha' is used along with 'Maori' to denote bi-culturalism but not always successfully. Literally 'chieftainship'. This term has several layers of meaning: from self-determination, to sovereignty, to managerial responsibility. The use of the intensifier 'tino' adds greater weight to the notion of 'ultimate' right to self-determination. Tino rangatiratanga is also a fundamental construct in the Treaty of Waitangi. Language/discourse. Te Reo Maori = the Maori language.

Akoranga Maori Hapu

Iwi

Kawa

Maori

Matauranga

Mita Pakeha

Rangatiratanga (Tino rangatiratanga)

Reo

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Taonga

Treasured possession as handed down from one generation to the next. Also used to denote high as opposed to low value of an object or concept. Thus the Maori language is regarded as a taonga. Customary practices and organising principles that can be changed to suit contemporary conditions but not often are. Higher or specialised learning. Can be used as a verb to denote the act of specialised learning, usually in a group. Genealogy, or more precisely the act of making genealogical ties between existing individuals, groups and their antecedents and/or descendants. Terms such as whanau, hapu and iwi are whakapapa-based entities. Terms such as Maori and Pakeha are not fundamentally whakapapa-based. A nuclear- or extended-family unit, usually spanning 3 generations. Also used to denote a defined group of people who share a common social, cultural, religious, or other purpose. Relationship, kinship. School of higher learning (in the traditional sense). Denotes context rather than process. Has been used (since the 1980s) as a synonym for 'university', but this is not its original meaning.

Tikanga

Wananga

Whakapapa

Whanau

Whanaungatanga Whare Wananga

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Glossary of Government Organisations

More complete descriptions of individual organisations can be found in Appendix 4.

Career Services

Provides information, advice and guidance services to help people make informed career-choices. Provides policy advice to the Minister and oversees the implementation of approved policies. Covers all areas of education early childhood, primary, secondary, and tertiary. It also negotiates funding for TEIs. Co-ordinates all qualifications in post-compulsory education and training, and oversees the standards of these qualifications. It also administers national examinations. Administers the Governments industry training policy. It focuses on transition to work, and on access to workplace training. Administers teacher registration and approves programmes for teacher education. Administers income support benefits and helps unemployed jobseekers to find work. It also administers student loans and allowances.

Ministry of Education

New Zealand Qualifications Authority (NZQA)

Skill New Zealand

Teacher Registration Board

Department of Work and Income

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Appendix 1: Guiding Principles

In Shaping a Shared Vision, the Commission identified the following guiding principles for the design of policy for the tertiary education system: Lifelong equitable access: All New Zealand citizens should have equitable and affordable access to tertiary education of an international standard of excellence, to the extent of their ability throughout their adult life. Portability: The tertiary education system should enable portability of credit and recognition of current competency. Balancing co-operation and competition: There should be a regulatory framework for the tertiary education system that seeks to maximise the benefits of both co-operation and competition. Differentiation and complementarity: There should be a regulatory framework for the tertiary education system that promotes differentiation and complementarity of roles in order to ensure that learning and knowledge creation opportunities are sufficiently diverse and comprehensive. National identity and cultural diversity: The tertiary education system should play an active role in the preservation and development of the identities of the people of New Zealand, as a nation in the Pacific. The Treaty of Waitangi: The tertiary education system should be informed by the Treaty of Waitangi. Democracy and citizenship: The tertiary education system should take its proper responsibility for safeguarding democratic values, the promotion of citizenship and participation in society, and the protection of fundamental human rights. Academic freedom: Tertiary education providers, their staff, and learners should have the maximum level of academic freedom consistent with the highest ethical standards and the demands of accountability. Autonomy: Tertiary education providers should have the maximum level of autonomy consistent with the nature of the services they are required to provide, the efficient use of resources, the national interest, and the demands of public accountability. Good stewardship of resources: Resources provided by the Government, learners, and others should be used efficiently, effectively, and ethically both by individual providers and within the system as a whole. Accountability: Tertiary education providers should be openly accountable to their respective stakeholders for their performance, including the efficient, effective and ethical use of the resources with which they have been entrusted, in a manner consistent with their purpose and the principle of autonomy. Predictability of funding: Public funding of tertiary education providers should be sufficiently stable and predictable to support effective planning and investment. Maintaining research capability: Research should be adequately supported long-term to contribute to the cultural, social and economic development of New Zealand, pursue innovative and creative endeavours, build and maintain a strong research workforce, and make an effective contribution to the global knowledge community. Responsiveness: The tertiary education system should be managed in such a way as to ensure that it is sufficiently innovative and responsive to the changing needs of society and the economy. Quality: All tertiary education should be of an acceptably high quality supported by processes of critical selfevaluation that are regularly assessed and audited.

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Appendix 2: Summary of Issues in the Submissions

Introduction
The Commission received 149 submissions on a wide range of issues that affect the tertiary education system. Amongst the issues addressed were the nature and level of differentiation within the system, the roles of different types of providers, the respective responsibilities of universities and polytechnics, the place of private providers within the tertiary education system, the role of colleges of education, the role of wananga, and the role and function of ITOs. Some of the submissions also addressed the appropriate policy instruments for regulating the behaviour of providers, in particular the means by which the Government can encourage cooperation and collaboration and reduce unnecessary duplication. The following is a brief summary of some of the issues that were raised in the submissions made in relation to this Report.

Differentiation and Parity of Esteem

The issue of differentiation in New Zealand TEIs has led to a perceived parity-of-esteem issue. This issue generated considerable discussion in the submissions. Much of the discussion centred on the ability of polytechnics to offer degrees, the scope of institutional autonomy, and the use of protected terms. Some of the submissions supported strong differentiation because this assists diversity of subjects and courses and improved public understanding of institutions roles (28, 36, 41, 47, 61, 100, 104, 110, 113, 121). It was argued in one submission that the legislative definitions were clear, but that funding and regulatory arrangements had led to a blurring of roles (47). Others felt that flexibility was more important, as actions are more important than mission or definition (29, 53, 68, 80). Those submissions also argued that community needs, not legislation, should drive the offerings of the TEIs. The Association of Polytechnics in New Zealand (APNZ) suggested that, although the gap in degree provision had narrowed between polytechnics and universities, the difference in mission was still significant they were offering different types of degrees (29). The Waikato Polytechnic stated: it is inappropriate to argue that simply because two types of institutions both offer degrees, they are necessarily in competition. (p. 9, 26) Others took up this argument, suggesting that polytechnics were simply developing qualifications to meet the needs of their traditional target market (34, 43, 54, 60, 71). Other submissions pointed out that, if anything, the universities had become more vocational over the last 30 years, arguably encroaching upon polytechnic turf (26, 43). While many diploma courses at polytechnics before 1990 were at a level that was similar to degree courses, none offered the equivalent of post-graduate courses, which has become a new area for debate. As at 1999, there were 562 students undertaking post-graduate level courses in polytechnics.66 The Association of Staff in Tertiary Education (ASTE) supported polytechnics offering degrees beyond bachelors level as long as they met the required standards, although it wanted to retain their vocational education capability (30). On the other hand, one submission argued that polytechnics should not offer doctorates (41), and others were keen on reexamining whether polytechnics should offer any advanced degrees (25, 61). One suggestion was that polytechnics offering expensive research-based degrees should do so under the supervision of a university (31). Some others argued that a strict distinction should be maintained between universities and polytechnics (22, 73, 121); they expressed a strong desire for community polytechnics to return to their basic role of serving vocational and social needs in a local community and to provide a bridge between secondary school and higher education (102). The Australasian Mycological Society argued that the outcome of competition between
66

See Ministry of Education (2000), P40.

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universities and polytechnics has been the narrowing and dumbing-down of universities and over-inflation of polytechnics abilities and qualifications (p.3, 88). One submission commented that the blurring of roles has led to universities becoming second-rate polytechnics and polytechnics becoming second-rate universities (81). Such submissions often referred to the special role that universities had in acting as the flagships of the tertiary education sector (p.1, 22) or as the critic and conscience of society (p.1, 87). Another argued that TEAC must acknowledge and reflect the complex central place that is unique to universities within the tertiary sector (p.2, 39). These examples illustrate the split between those who see universities as a unique cultural institution and those who see them as just one type of tertiary education institution. The argument that polytechnic degrees are different led on to points about the way in which degrees, and the research that their teachers need to do, are defined. A restrictive definition for the research that supports degree teaching was rejected by some, with polytechnics preferring the NZQA definition (60). Simply noting that the degrees were different was not enough, though, as some people see polytechnic degrees as being inferior. APNZ noted that this parity-of-esteem issue had led two polytechnics (UNITEC and Auckland University of Technology) to seek to become universities in order to get equal recognition for their students achievements (29). In the process they may have lost some of their initial strengths. The solutions proposed to this problem show a strong divergence of views: All but one of the main national organisations (APSU, 28) either opposed the university of technology concept or did not mention it. The University of Waikato suggested that policy should not be driven by a couple of exceptions to the rule (50). Auckland University of Technology opposed both the university of technology concept and APNZs national polytechnic university (31, 107). UNITEC strongly supported the university of technology concept, presenting a proposal for implementation (71, 101, 142). The Waikato Polytechnic also supported the university of technology concept and presented a proposal for implementation, though this was not as detailed as UNITECs. It rejected the APNZ proposal (26, 113). Smaller polytechnics and some larger ones such as Otago Polytechnic and Christchurch Polytechnic Institute of Technology opposed the university of technology and supported APNZs proposal (29) for a national polytechnic university. They saw the APNZ proposal as helping to preserve the shape of the polytechnics, while allowing them to offer degrees equivalent to those of universities in their areas of strength (34, 36, 54, 55, 59, 60). ASTE rejected the APNZ proposal in its present form, urging greater dialogue with those who are responsible for the facilitation of learning, developing new programmes and producing research outcomes, i.e. academic staff (119). Massey University suggested that the term institute of technology, already taken up by many institutions, may be a better option than university of technology (38). Those supporting the latter argued that it recognised the obvious distinction between higher applied learning and higher research-based learning. They pointed to the real differences between the offerings of UNITEC or AUT and those of the University of Auckland. They suggested that the only way to deal with parity of esteem was to recognise such institutions as valid institutions of higher learning, rather than to implicitly encourage them to become research-led universities (32, 71). On a completely different note, The Open Polytechnic of New Zealand suggested that open university be given the status of a protected term (55, 122).

PTEs and their Funding

A fundamental problem confronting the tertiary education system is how to maximise participation rates and equitable access, while at the same time ensuring adequate quality in the context of ever-constrained budgets. Most of the submissions acknowledged the fact that New Zealand must operate in an environment of scarce resources, and that difficult decisions must be made about the nations investment in tertiary education.

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At the heart of the PTE debate is the issue of funding tertiary education in a time of scarce resources. Some submissions stated that having more than 800 registered PTEs was excessive and that PTEs were undermining vulnerable TEIs by cherry-picking the most popular courses but no specific examples were provided (10, 25, 29, 30, 34, 41, 80). One provider stated that the increase in PTEs had seen the utter destruction of a rational system of trades education (p.3, 26) with PTEs and ITOs exploiting the most profitable niches and leaving the rest to the polytechnics. Auckland College of Education stated that there probably should be some creative tension between PTEs and TEIs, but that there should be restrictions on how many teacher education providers were funded. There was also a perception that PTEs did not meet the community-service obligations that TEIs did (41), and that their courses were not of equivalent quality (7, 9, 25, 28, 41, 49). In contrast, some of the submissions pointed out that PTEs had reporting requirements similar to those of TEIs (40) and that they added cultural and academic pluralism to the tertiary education system (40, 46) the latter point being recognised by others who were otherwise critical of PTEs (28, 29, 41). The New Zealand Association of Private Education Providers (NZAPEP) commented that, while there are 841 registered PTEs, only 441 receive government funding and/or offer courses of longer than a week (53). PTEs account for 13.5 percent of all enrolments and 5 percent of all EFTS-funded enrolments. Some submissions from PTEs used the term independent tertiary education providers, as they felt it better reflected what they were and what they did. (21, 53). Another PTE pointed out that it was much like a state provider because it was not for profit but it offered courses that were qualitatively different (46). Actions proposed by submitters ranged from severely cutting back on PTEs to allowing them to continue on their present course. The two principal solutions proposed by those opposed to PTEs were a cap on the number of PTEs receiving EFTS funding or a requirement for them to prove that the need they were meeting was not already being met by the public sector (28, 32, 34, 41). The Association of University Staff of New Zealand (AUS) and ASTE noted that PTEs did have high Maori enrolments but this was part of the ghettoisation of Maori (25, 30). AUS noted that the PTEs funding could instead be used to improve the responsiveness of universities, which have the lowest Maori participation of all tertiary education providers. The Employers Federation and the NZAPEP suggested that PTEs played an important role in second-chance education, vocational education, and specialist degree programmes. NZAPEP pointed out that PTEs already complemented other providers, and that most competition is between TEIs. These submissions were of the view that the current system was working well (40, 52). One submission argued that PTEs should be required to have sufficient capital to support students in case of institutional failure; and that if a PTE received capital funding from the Government, then the Government should have some ownership interest in that PTE (2). The Bible College of New Zealand (a PTE) argued that PTEs are a diverse group and that this needs to be recognised (7). As the first institution other than a university to be approved for offering degrees, the Bible College argued that the requirement for all PTEs to demonstrate class-contact time was very difficult, especially in programmes that involved masters students working on their theses. Many of the submissions on PTEs were put forward by PTEs eager to describe their important contributions to the tertiary education system overall (89, 106, 117, 120, 123, 124, 127, 128, 130, 131, 132, 133, 134, 135, 137, 138, 139). One submission, when describing the role of PTEs, argued: Private education at the secondary level is accepted and respected. It is curious that similar acceptance and respect at the tertiary level are difficult to attain although over the past couple of years considerable gains have been made. Private tertiary educational institutions, many now with

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track records of significant achievements, deserve to be seen as more than plugs for gaps in a governmental system. While in the past uneven playing fields have forced them to seek particular market niches and/or to demonstrate higher quality and benefits to their students, private tertiary education institutes (sic) are now an integral part of the sector. (p.3, 135).

Colleges of Education as Specialist Institutes

The Association of Colleges of Education in New Zealand (ACENZ) and ASTE supported the traditional role of the colleges of education and suggested that any mergers should be voluntary (12, 30, 91). Some colleges of education pointed out that they had diversified, but only in associated areas (13). Overall, the colleges were perceived as retaining a unique position in teaching, research, professional development, and curriculum support (13, 35, 52). There was seen to be no need for forced mergers with universities; it was believed that this could damage the provision of teacher education, as the culture of universities is not amenable to professional education (35, 52). One suggested alternative to forced mergers was to have all colleges of education working under the aegis of a single university (35). Some submissions acknowledged the tension between colleges of education and the Government, in that the colleges serve the recruitment needs of a largely government-controlled system; but these submissions nevertheless wanted the colleges to maintain their institutional autonomy (35, 53, 65). Two submissions suggested that teacher education should be seen as an integral part of the tertiary education system, rather than as a supplier for the compulsory education system (17, 62). Various organisations outside the colleges of education suggested that the colleges should be encouraged to merge with other institutions, with their protected term being dropped from the Education Act 1989 (25, 28, 36, 41, 71). This was justified with arguments that the colleges of education have lost their monopoly on teacher education, that the small size of the colleges undermines economies of scale, that teaching needs to be done within a research environment, and that the colleges add little to differentiation of the system. The members of the Association for Tertiary Education Management (ATEM) tended to favour the merger of the remaining colleges of education with universities, as a means of broadening their students options and enhancing the international standing of their qualifications (96).

Wananga
Although wananga represent about 1 percent of government-funded places in tertiary education (71), there is general agreement that wananga are critical to Maori development and are a positive move (32, 36, 41, 71, 96, 119). Wananga are also seen as an important step in exercising tino rangatiratanga and as a critical component of a differentiated system despite their not being a protected term in the Education Amendment Act 1989 (28, 41). Two submissions recommended the retention of wananga, a clarification of their definition, and continued consultation on such with Maori (28, 41). One submission (25), along with its supplementary submission (121), stated that the Treaty of Waitangi could be used to clarify the differentiated infrastructure of wananga. Another submission argued that, under the Treaty, the Government is obliged to support and fund wananga (36) a point advanced further (121) in support of the Waitangi Tribunals findings on the capital funding of wananga.67 Furthermore, one submission suggested a specific contestable funding 'tranche' for wananga (29). One submission (71) claimed that, because of their newness, wananga currently add little to the differentiation of the system in terms of student choice although they serve a valuable purpose in contributing to Maori educational development. Another argued that a proliferation of publicly funded wananga may not be efficient or in the national interest (32). A further submission suggested an EFTS hosting limit on wananga, to be set by an appropriate Maori authority (31).

67

Waitangi Tribunal (1999).

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Submission 41 stated that wananga have experienced difficulties in meeting some of the statutory requirements for governance. This same submission also noted that very little work has been done in evaluating the effectiveness of wananga, and suggested that any proposed intermediary body should be engaged in wananga establishment. Submission 124 recommended an alternative status to Private Training Establishment and Whare Wananga for Maori tertiary (education) providers. However, this submission added a cautionary note to the effect that the attainment of whare wananga status (through NZQA, for example) would not suit some providers because of capacity issues and inadequacies in the current definition. In the spirit of co-operation, three submissions (30, 39, and 119 a follow up to 30) mentioned the potential for other TEIs and wananga to come together in certain arrangements of mutual benefit, and also the need for this. Three other submissions (9, 47, 50) noted or discussed the notion of internal wananga and colleges (i.e. entities internal to TEIs). Submission 113 extended this co-operative notion to credit transfers, with a specific mention of credit transfer between wananga and PTEs.

ITOs as Part of the Tertiary Education System

There were few references to ITOs in the submissions, some of which were negative (31, 34) or simply noted problems (38). AUT suggested that all ITO money should be transferred to the polytechnics so that they could establish centres of excellence in trade training (31). The Industry Training Federation also supported centres of excellence, but not the transfer of purchasing power (67). The Federation and others were concerned about the short-term contracts offered by ITOs, because these undermined long-term planning and capital investment (31, 34, 60). Some submissions proposed that ITOs should be restricted to standard-setting and that on-the-job assessment should be much more limited (60, 83). The Industry Training Federation argued that ITOs were playing an important role: Participation is high and growing rapidly Participation has diversified to include many more adults, Maori and Pacific Islands people, and women The key strength of the current strategy is its flexibility and responsiveness to the dynamic training requirements of diverse industries. In simple terms, trainees can achieve national qualifications while in employment and at a lower cost than if they were to study full-time at a tertiary institution (p.5, 67). Some of the main issues from the Federations perspective were the level of resourcing, the need for research into industry training, the duplication of ITO functions by other organisations, the number of ITOs, and restrictions on funding above level 4 of the National Qualifications Framework (67).

Intermediary Body
Many of the submissions made to the Commission addressed the issue of whether establishing an intermediary body would be desirable. A number of them favoured the creation of such a body (89, 91, 102) and even argued that the establishment of an intermediary body for tertiary education in New Zealand is essential (133). Amongst other things, intermediary bodies were seen as providing a means for achieving greater differentiation within tertiary education, enhancing policy co-ordination, and improving the quality of policy advice. Against this, the creation of a new body was questioned or opposed on the grounds that it might unduly constrain institutional autonomy, increase the level of bureaucratic control, and impose additional administrative costs (131). One submission, on behalf of the members of the ATEM, presented mixed reactions to the introduction of an intermediary body. While some members supported the concept, others felt that its establishment would create too many levels to work through (p. 5, 96).

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Various submissions referred to the successful implementation and use of intermediary bodies in countries such as Australia (before 1988), Israel, the United Kingdom, and the United States especially the state of California (47, 59, 70).

Charters and Profiles

Various submissions (27, 28, 32, 41, 47, 59, 70, 91, 101) argued for the use of educational profiles or enhanced charters to set out expectations for, and to monitor the performance of, tertiary providers. The strongest advocacy for profiling was contained in submissions by the Aotearoa Post-Compulsory Student Union (APSU) (pp.19-20, 28) and UNITEC (101). APSU argued that each TEI and ITO should be required to develop an educational profile setting out its shortterm (1 year) and medium-term (3 years) objectives and characteristics. Such a profile would be more specific than an existing charter or a statement of objectives, and would include information about: the range of courses and subjects the TEI/ITO intended to offer or purchase; where and how the TEI/ITO intended to offer these courses; expected student numbers; the area in which the TEI/ITO intended to specialise; institutional capital management and development plans; equity programmes and targets; and current and planning partnerships with industry, the community, and other key stakeholders. Such profiles would be negotiated with the Minister via a Tertiary Education Authority. In negotiating a TEI or ITO profile, the Authority would take into account such matters as: the Governments overarching strategy for tertiary education; the need to minimise duplication, and encourage institutional specialisation; the need to ensure equity of access, and a wide range of education provision; the need to have efficient and responsible institutional management; the particular type and legislative characteristics of the institution; the financial performance of the institution; and the educational performance of the institution. Under the APSU model, a profile (once approved) would constitute the basis for funding that TEI or ITO. Where the Authority had reservations about particular aspects of the profile, conditions could be attached. Alternatively, the Authority could recommend that the profile be rejected and that the TEI or ITO not receive public funding. The proposals advanced by UNITEC have many similarities to the APSU approach. Under the UNITEC model, each higher education institution would have an educational profile to be negotiated with the Government on a rolling 3-year basis. The relevant documentation would define the academic and professional envelope within which each institution would operate. For instance, the documentation would set out each of the disciplinary areas (under an agreed classification system) in which the institution would provide programmes and, within each discipline, the level (or levels) at which it would be offering courses (e.g. certificate, diploma, undergraduate degree and post-graduate degree). In addition, the institution would be required to specify what proportion of the students in each disciplinary area would be undertaking courses at each level. Negotiations would then take place with the Government over the number of publicly funded places (within agreed ranges) that the institution would be able offer in each disciplinary area and at each level. Once the institutions profile had been set, any movement outside the agreed parameters (whether in terms of disciplinary areas or levels) would require governmental approval, especially if there was any question of public funding being provided. Under UNITECs proposal, individual providers would retain considerable flexibility:

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they would have the ability to move the actual student load between classifications and categories, and to introduce new or revised programmes in response to developments in student needs or fields of inquiry. UNITEC also suggested ways in which the research activities undertaken by tertiary education providers could be incorporated into a profiling system.

Learning and Technology

Lifelong learning for a knowledge society was addressed in most of the submissions. Technology and, more specifically, e-learning will play an important role in the development of lifelong learning pathways and will provide access for learners in distant geographical locations. It has been argued by some that e-learning should be used as a means to an end, rather than as an end in itself. In its submission, ASTE (119) maintains that: the potential of E-education is much greater than is presently being realised. However, it is our view that tertiary institutions should be exercising some caution in this area. E-education should not be embraced simply as a way to cut the cost of mass tertiary education. The real time costs associated with the development of materials, teaching support and delivery must be taken into account, including the difficult-to-measure workload implications for academic staff. It is ASTEs view that tertiary institutions should be using E-education to modernise academic work, and not to transform themselves from real to virtual institutions. The Open Polytechnic of New Zealand (122) argued that a lead provider with demonstrated capability should be nominated to develop this area. The concept of lead provider is similar to the idea of a centre of excellence.

Maori and Pacific Peoples Issues

Several submissions outlined particular and general failings (and underlying gaps) of the tertiary education system in relation to Maori. Some of the issues and themes described included: exclusionism (21, 22, 67), income disparities (9, 47), lowered expectations (9, 25, 47), general participation (48, 58), curriculum support (14, 60), equitable access (3, 69), competition (25), lack of research (48), systemic failings and underachievement (9, 22, 48, 59), and advocacy and mentoring (9, 22, 58) all this despite the promise of mass tertiary education (43). A number of submissions also stated that the future of the tertiary education system needs to be considered within a context of building a critical mass of well-qualified and highly motivated Maori teachers and researchers, which will be essential given the changing nature of New Zealand demographics (9, 25, 47, 48). Some of the submissions reflected on the responsiveness of TEIs to Maori and argued that changes have occurred, despite significant institutional barriers and constraints. Many tertiary education providers, as well as Maori-specific entities such as wananga, are now providing a culturally appropriate context for learning and so they represent a powerful conduit for Maori into the tertiary education system as a whole (25, 28, 36, 41, 121, 124). Only a few of the submissions were related directly to Pacific peoples. One submission (117) suggested that the Ministry of Education should engage directly with PTEs that cater specifically for Pacific peoples needs. Another submission (132) also supported this view, stating that a hands-on approach would fit well with Polynesian tradition and cultural patterns.

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LIST OF SUBMITTERS (as they referred to themselves in submissions) TABLE A2-1 Submission Number
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Name of Submitter
Jacinta Dalgety, PhD student, The University of Waikato A J C Begg BSc BCom DPhil DipTchg, Senior Lecturer, The University of Waikato Canterbury Medical Research Foundation Faculty of Medicine, University of Otago National Institute of Water and Atmospheric Research Ltd Instructional Design and National Student Administration and Teaching Support, Massey University Bible College of New Zealand Inc. Meteorological Service of New Zealand Limited Victoria University of Wellington Alumni Association Telford Rural Polytechnic Peter Walls, Professor of Music, Victoria University of Wellington Association of Colleges of Education in New Zealand Christchurch College of Education Hutt Valley Polytechnic Jim Chapple (personal submission) Massey University Extramural Students Society Inc. Teacher Education Forum of Aotearoa New Zealand The New Zealand Association of Scientists (Inc) Associate Professor John D. Green, Department of Biological Sciences, The University of Waikato Dr. Lyndsay Main, Associate Professor in Chemistry, The University of Waikato Apparel Technology Training Ltd Mark Wilson, Jolisa Gracewood, Richard Easther, Amanda Peet, Michelle Elleray and Alice Te Punga Somerville expatriate academics and researchers Human Resources Institute of New Zealand Professor Margaret Clark; Professor Ralph Pettman; Professor Emeritus Harvey Franklin; Professor Paul Morris; Professor Emeritus Peter Munz; Professor Vincent OSullivan; Associate Professor Harry Ricketts; James Urry, Reader; R J Tristram, Senior Lecturer; Professor Emeritus David Vere-Jones: all of Victoria University of Wellington The Association of University Staff of New Zealand The Waikato Polytechnic David Woodhouse, Director, New Zealand Universities Academic Audit Unit Aotearoa Post-Compulsory Student Union Association of Polytechnics in New Zealand Association of Staff in Tertiary Education Auckland University of Technology Vince Catherwood and George Preddey: Catherwood, Preddey & Associates APNZ Teacher Education Subject Forum Christchurch Polytechnic Institute of Technology Dunedin College of Education Education Policy Response Group, Massey University College of Education Professor Luanna Meyer, Pro Vice Chancellor, Massey University College of Education Professor James McWha, Vice Chancellor, Massey University Massey University Council New Zealand Employers Federation New Zealand University Students Association (Inc) Noeline Arnott, graduate student, Massey University Otago Polytechnic Associate Professor Irene Zohrab, Russian Section, School of European Languages, Victoria University Tairawhiti Polytechnic The Learning Connexion Ltd The University of Auckland University of Canterbury

25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

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Submission Number
49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98

Name of Submitter
Ian Whalley, Music Department, The University of Waikato The University of Waikato PostGraduate Students Association, Victoria University of Wellington Wellington College of Education New Zealand Association of Private Education Providers Whitireia Community Polytechnic The Open Polytechnic of New Zealand Professor DT Jones, Dean, Otago School of Medical Sciences, University of Otago Henry Barnard, Senior Lecturer, Social Anthropology Programme, School of Global Studies, Massey University Te Mana Akonga (Inc): National Maori Students Association Professor PD Gluckman CNZM MBchB MmedSc DSc FRACP FRCPCH FRSNZ, Dean, Faculty of Medical and Health Sciences, The University of Auckland Nelson Marlborough Institute of Technology New Zealand Vice Chancellors Committee School of Education, The University of Waikato School of Music, Victoria University of Wellington Aoraki Polytechnic Auckland College of Education Dr Charles R. Pigden, Department of Philosophy, University of Otago Industry Training Federation New Zealand Association of Crown Research Institutes (Inc) Royal New Zealand Foundation for the Blind The Humanities Society of New Zealand UNITEC Institute of Technology University of Canterbury Students Association (Inc) Kathrine Biggs, Philippa Tucker and Jayendra Chhana, post-graduate students, Victoria University of Wellington Claudine Earley, Postgraduate Student, Victoria University of Wellington James Urry BSc (Hons) (Lond) DPhil (Oxon), Reader in Anthropology, Victoria University of Wellington Wanganui District Council Lincoln University Industrial Research Limited Victoria University of Wellington Eastern Institute of Technology Derek W. Smith, Associate Professor of Chemistry, The University of Waikato Edwin Budding, Central Institute of Technology Bay of Plenty Polytechnic Gordon Parr Institution of Professional Engineers New Zealand; School of Engineering, University of Canterbury; School of Engineering, The University of Auckland; Engineering and Technology Programme, Massey University. Bob Mills CEng MIMechE FIPENZ, Senior Lecturer, Department of Materials and Process Engineering, Technology Management and Innovation Consultant, The University of Waikato Dr Charles R. Pigden, Department of Philosophy, University of Otago Australasian Mycological Society Bible College of New Zealand Inc. Luis Gonzalez, Staff Development Co-ordinator, Bay of Plenty Polytechnic Association of Colleges of Education in New Zealand Whitireia Community Polytechnic Caryl Ginever, Community Education, Hamiltons Fraser High School Adult and Community Education Association Robert Tobias, Centre for Continuing Education, University of Canterbury Association for Tertiary Education Management Claudine Earley, Postgraduate Student, Victoria University of Wellington New Zealand Geophysical Society Inc.

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Submission Number
99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149

Name of Submitter
Linda H Wilson MSc DHA, NZROT The Association of Polytechnics in New Zealand UNITEC Institute of Technology The New Zealand Institute of Management John Tiffin, Professor Emeritus of Communication Studies, Chancellor of the Global Virtual University New Zealand Vice-Chancellors Committee Department of Child Youth and Family Services Teachers to Speakers of Other Languages Aotearoa, New Zealand, Special Interest Group: ESOL in Tertiary Sector The Auckland University of Technology Transit New Zealand University of Auckland Alumni Association Professor Darryl Le Grew, Vice-Chancellor, University of Canterbury Jim Chapple, Green Party co-ordinator for eco-education Hana Potiki, Tumuaki, Te Matauranga Maori, Christchurch Polytechnic The Waikato Polytechnic New Zealand Manufacturers Federation Inc. National Council of Women of New Zealand Brian Easton Pacific Island Training Providers of New Zealand Inc. New Zealand Association for Environmental Education Incorporated The Association of Staff in Tertiary Education SEEDS Institute International Ltd Association of University Staff of New Zealand The Open Polytechnic of New Zealand Captains Table Training Centre Te Runanga o Turanganui a Kiwa Simon Titheridge Dr James Maclauren, Department of Philosophy, University of Otago Stuart Peterson, Director, Northland Farm Labour Ltd Ashton Warner Nanny Academy Robyn Walsh BA MBA Post-Grad Dip Arts Dip Teaching, Director, Marketing and Communications, UNITEC, Auckland The Salvation Army Employment Plus Avonmore Tertiary Academy Jonathan Milne, Managing Director, The Learning Connexion Interim Technology Training Institute AMES Resources Trust Auckland Institute of Studies St. Helens Dunedin College of Education National Council of YMCAs of New Zealand Agriculture New Zealand Limited The National College of Design and Technology New Zealand Association of Private Education Providers supported by 66 PTEs South Island Regional Polytechnics Alliance UNITEC Institute of Technology New Zealand Association of Private Education Providers New Zealand Tertiary College English Language and Literacy for New Zealand, Auckland University of Technology Robin Gwyn JP MA Cert.Ed PhD, Formerly Reader in History, Massey University The University of Auckland Alumni Association Datacom Employer Services Liz Love, Di Lyons, Margaret McNie, and Carrie Stock

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Appendix 3: Groups and Individuals Consulted

The lists given below are of the groups and individuals that the Commission has met with over the course of its deliberations. In keeping with the Commissions open door policy on meeting and consulting with interested parties, many of these meetings were at the groups or individuals request. The Commission also instigated meetings with others when it felt this to be necessary. Please note that the lists do not include informal meetings and meetings with government departments and ministries.

Tertiary Education Institutions

Auckland University of Technology Christchurch College of Education Christchurch Polytechnic Institute of Technology Dunedin College of Education Massey University Otago Polytechnic Te Wananga o Aotearoa The Open Polytechnic of New Zealand UNITEC Institute of Technology University of Auckland University of Canterbury University of Otago Wanganui Regional Community Polytechnic

Industry Training Organisations

Design & Construction Consultants Industry Training Organisation Warwick Bell Electricity Supply Industry Training Organisation Bob Howlett Forest Industries Training John Blakey New Zealand Contracting Industry Training Organisation John Wills

Maori
Nicola Bright Te Taurawhiri, Maori Language Commission Arohia Durie Massey University Ross Himona New Zealand Maori Internet Society Trevor Moeke Te Mangai Paho Toroa Pohatu Hana Potiki Christchurch Polytechnic Institute of Technology Piri Sciascia Victoria University of Wellington Graham Smith University of Auckland Te Whare Wananga o Awanuiarangi Danica Waiti Te Mana Akonga New Zealand University Students Association

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Pacific Peoples
Pesio Ah Honi PIERC Education Melani Anae University of Auckland Linda Aumma UNITEC Institute of Technology Esther Cowley Auckland University of Technology Winnie Laban MP Okusi Maitina University of Auckland Linita Manuatu University of Auckland Rosemary Peterson Auckland University of Technology Sisi Pritchard Academy NZ Otahuhu Ezra Schuster UNITEC Institute of Technology Lavinia Tamarua Turoa University of Auckland Koli Vanisi Massey University Albert Wendt University of Auckland

Private Training Establishments

Academy New Zealand Andrew Murray Apparel Technology Training Kevin Smith Auckland Institute of Studies St Helens Steve Keung Bethlehem Institute of Education David Giles Bible College of New Zealand Bruce Knox The Sir George Seymour National College of Tourism and Travel Raewyn Idoine Te Rapu Matauranga Ruhia King The Learning Connexion Jonathan Milne The Open Pacific Education Centre Fitu Ah-Young Whitecliffe College of Art and Design John Reynolds

International
Israeli Council for Higher Education Nicholas Barr London School of Economics and Political Science Roger Mills Open University

Business and Industry

Employers Federation Marilyn Davies Ericssons Stephen Crombie Industry Training Review Michael Fletcher Manufacturers Federation Simon Carlaw Transit New Zealand Robin Dunlop and Stuart Fraser John Williams, Jim Donovan, Bill Kain, and Suzanne Snively

Sector Groups
Association of University Staff of New Zealand Neville Bampied, Rob Crozier and Margaret Ledgerton Industry Training Federation Martin Eadie, Paul Williams and Nick Green New Zealand Vice Chancellors Committee Tertiary Institutes Allied Staff Association Shelley Weir

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Other Organisations and Individuals

Adult and Community Education Working Group Mary Jane Rivers and Jo Lynch Career Services Lester Oakes David Hood Education New Zealand John Sargent Foundation of Research, Science and Technology Peter Morten, Emma Speight and Clare Dominick New Zealand Green Party Ian Ewen-Street MP and Jim Chapple Regional Development Strategy Group, the Office of Hon Jim Anderton John Lepper and David Cuthbert, Science Deans James Coxon, Roy Geddes, Margriet Theron, John Welch and Peter Englert The Natural Step Dr Lin Roberts and Jo Blakeley Waitakere City Council Tony Mayow Workbase Education Trust Liz Moore

Working Groups
International Reference Group
Jim Downey, former Chair of the Association of Commonwealth Universities, former President of the Universities of Waterloo and New Brunswick, Canada Nicholas Fox Head of Learning Development, Learning Business Link, Kent, UK Ray Griffin Waterford Institute of Technology, Ireland Gretchen Kalonji Kyocera Chair International Faculty Council, University of Washington, USA Johanna Lasonen, Institute for Educational Research University of Jyvaskyla, Finland Mike Long, Senior Research Fellow, Centre for the Economics of Education and Training, Monash University, Australia Simon Marginson, Associate Dean (Research), Director, Monash Centre for Research in International Education, Monash University, Australia Chris Robinson Managing Director, National Centre for Vocational Education Research, South Australia Margareta Ronnback Director of Education, National Agency of Education, Stockholm, Sweden Sir David Watson Vice-Chancellor, University of Brighton, UK

Research Working Group

Professor Paul Callaghan Professor Marston Conder Professor Mason Durie Jane Holden Dr Bill Kain Dr Wanda Korndorffer Professor Ian Pool Dr Ian Smith Dr Steve Thompson

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Appendix 4: Current Arrangements

Forms of Provision
There are a variety of ways in which providers of tertiary education and training are currently categorised. These include: tertiary education institutions (TEIs) which can be colleges of education, polytechnics, universities or wananga defined and established under s162 of the Education Act 1989; government training establishments (GTEs) defined and recognised under s159 of the Education Act 1989; private training establishments (PTEs) defined under s159 and recognised under s236 of the Education Act 1989; other tertiary education providers (OTEPs) recognised under s321 of the Education Act 1989; industry training organisations (ITOs) defined under s2 and recognised under s5 of the Industry Training Act 1992; continuing education organisations defined under s2 and recognised under s97A of the Education Act 1964. In addition, it is possible for a provider other than a TEI to be recognised as a university, polytechnic, or college of education under s264 of the Education Act 1989.

Tertiary Education Institutions Universities

Universities are state-owned autonomous institutions characterised by their engagement in a wide diversity of teaching and research, especially at a higher level. This teaching and research: maintains, advances, disseminates, and assists the application of knowledge; develops intellectual independence; and promotes community learning. Under the Education Act 1989, universities are required to have all the following characteristics: to be primarily concerned with more advanced learning, the principal aim being to develop intellectual independence; to undertake research and teaching that are closely interdependent, with most teaching done by persons active in advancing knowledge; to meet international standards of research and teaching; to be a repository of knowledge and expertise; and to accept a role as critic and conscience of society. There are 8 universities in New Zealand. Each of them (apart from Auckland University of Technology) is established under its own Act.

Polytechnics
Polytechnics or institutes of technology are state-owned autonomous institutions that offer a wide diversity of courses, including vocational training. These courses: contribute to the maintenance, advancement, and dissemination of knowledge and expertise; and promote community learning. Polytechnics also promote research, particularly applied and technological research.

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As defined under the Education Act 1989, polytechnics must exhibit one or more of the following characteristics: to be primarily concerned with more advanced learning, the principal aim being to develop intellectual independence; to undertake research and teaching that is closely interdependent, with most teaching being done by persons active in advancing knowledge; to meet international standards of research and teaching; to be a repository of knowledge and expertise; and to accept a role as critic and conscience of society. There are currently 22 polytechnics in New Zealand.

Colleges of Education
Colleges of education are specialist institutions that provide teaching and research programmes to support the development of pedagogy and teaching practice and associated social and educational service roles. While specialising in teacher education, a college of education may also offer other courses. Like polytechnics, they are required to exhibit one or more of the following characteristics: to be primarily concerned with more advanced learning, the principal aim being to develop intellectual independence; to undertake research and teaching that is closely interdependent, with most teaching being done by persons active in advancing knowledge; to meet international standards of research and teaching; to be a repository of knowledge and expertise; and to accept a role as critic and conscience of society. There are currently 4 colleges of education in New Zealand

Wananga
Wananga are characterised by teaching and research that: maintains, advances, and disseminates knowledge develops intellectual independence; and assists the application of knowledge about ahuatanga Maori, according to tikanga Maori. There are currently 3 wananga established as TEIs.

Government Training Establishments (GTEs)

GTEs are Crown entities that are approved by the Minister of Education to provide specialist tertiary education and training for defined groups (subject to approval and accreditation requirements). There are currently 11 GTEs: Career Services; Custodial Studies Unit of the Prison Service; Department of Child, Youth and Family Services; Early Childhood Development; Naval Training HMNZS Tamaki; New Zealand Army Government Training Establishment; New Zealand Fire Service National Service Centre Training Support; New Zealand Police Training Services; RNZAF Directorate of Education and Training;

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Sector Development Unit of the Ministry for Emergency Management; and Specialist Education Services.

Private Training Establishments (PTEs)

PTEs are defined in the Education Act 1989 as an establishment, other than an institution, that provides post-school education or vocational training. In this sense, all education and training organisations other than TEIs are PTEs. The establishment of NZQA and the National Qualifications Framework in 1990 allowed PTEs to provide nationally recognised qualifications on the same quality-assured basis as TEIs. This has enabled PTEs to deliver government-sponsored targeted training programmes such as Training Opportunities (TOP) and Skill Enhancement and also to seek funding through the EFTS-based funding system. In order to be able to provide approved courses, offer programmes of over 12 weeks duration to international students, or be eligible for government funding, a PTE must be registered under s236 of the Education Act 1989. This requires the organisation to be a body corporate, to supply proof that it is financially viable, to meet requirements for providing information to prospective students, and to meet quality standards set by NZQA. The key features of the PTE component of the tertiary education system are its diversity and complexity. It encompasses a diverse and complex range of providers in respect of their ownership, size, role and purpose, reliance upon government funding, and relationship to public tertiary education providers. Individual PTEs have developed to meet the needs of many different groups in many different locations in New Zealand. Most have tended to specialise, offering courses in a narrow field. These courses range from degree and post-graduate programmes to week-long transition-to-work programmes. The majority of programmes offered are at lower levels of the National Qualifications Framework (including levels 1 and 2), and many PTEs specialise in second-chance programmes such as TOP, Skill Enhancement, and Youth Training. In addition, PTEs provide most of the targeted training programmes and trade apprenticeships funded by Skill New Zealand. While the subject areas and range of programmes offered by PTEs are diverse, individual PTEs are small in terms of the number of students they educate and the number of qualifications and courses they teach. A large proportion of students attending PTEs are Maori or Pacific peoples and were beneficiaries or unemployed before attending the PTE. There are currently over 800 registered PTEs. Approximately 200 of these receive EFTS-based funding, and a further 200 contract for other forms of government funding. The remainder offer programmes to international students or generate their revenue from sources other than the government, including student fees and corporate training.

Other Training and Education Providers (OTEPs)

OTEPs are recognised under s321 of the Education Act 1989. The criteria for recognition include whether a provider is to supply a service of national significance, which is generally not able to be funded solely through an EFTS-based funding mechanism. There were 13 OTEPs funded in 1999: 3 provided early childhood teacher or parent-education qualifications; 2 offered community education courses for specific ethnic communities; 4 provided basic education opportunities for adults (including community and workplace literacy, numeracy, and ESOL programmes); 3 provided qualifications in the performing arts; and 1 was involved in agricultural training.

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Industry Training Organisations (ITOs)

ITOs are industry bodies representing different industries or industry sectors. While they are not training providers, they are responsible for the design, management and delivery of training arrangements for their respective industries. This includes the facilitation of on-the-job training as well as commissioning training providers to offer complementary off-the-job training and education courses. These activities are funded through the Industry Training Fund, which is administered by Skill New Zealand. A key part of the role of ITOs is the development of unit standards and national qualifications for their respective industry sectors. In addition, ITOs are involved in accrediting providers to teach these unit standards, moderating assessment, and (in some cases) assessing and maintaining trainee records. There are currently 47 registered ITOs.
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Community Education Providers

Community education programmes are provided by universities, polytechnics, colleges of education, PTEs, and schools and in 1999 they were attended by about one in every 150 New Zealanders (this equates to approximately 25,000 community education students). Seventy-seven percent of TEI community education students in 1999 were enrolled at polytechnics. The majority of these students were of mature age (61 percent were aged 35 or more, with only 17 percent below the age of 25). Schools provide adult community education programmes in addition to their regular curriculum. Their government-funded community education programmes include basic education for adults, Maori language and culture, training for voluntary community workers, parent-education courses, programmes defined to meet community need, and personal development. Adult community groups have access to CLANZ69 funding for non-formal community education activities.

Other Forms of Provision

Secondary Tertiary Alignment Resource
The Secondary Tertiary Alignment Resource (STAR) funding ($24.17 million in 1999) enables secondary schools to purchase and/or provide workplace experience that lead to skills and qualifications which promote transition from school to either employment or further education. In 1999 there were 9,230 STAR-funded students in TEIs, comprising 3 percent of all TEI students. Almost all the STAR students studied at polytechnics.

Gateway
Gateway is a pilot programme designed to increase the number of school-leavers entering apprenticeships, traineeships and other structured industry training. Gateway provides support for programmes that link to these types of training. In most cases, the school will act as a broker between the student and the training programme; in other cases, the brokering will be done by community groups under contract to Skill New Zealand, or by Skill New Zealand itself.

The National Certificate of Educational Achievement (NCEA)

This is a new qualification under development for introduction in schools from 2002. Aspects of its design are aimed at ensuring that the qualification is flexible in the range of learning that can be recognised. Because of

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As at 25 January 2001. The CLANZ Committee (Committee for Community Learning Aotearoa New Zealand) has $200,000 available nationally for distribution to community groups for learning projects or programmes for adults.

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the flexibility in crediting components of other qualifications within the NCEA, students can complete an NCEA while studying for a tertiary education qualification. The NCEA will also be awarded by tertiary providers, allowing second-chance opportunities for those who did not achieve a secondary-level qualification while still at school.

Youth Training
Youth Training is an education scheme at NQF levels 1-3 for school leavers who are under 18 and have low or no qualifications. It allows young people to explore work options, expand their understanding of the world of work, and develop job skills. At 30 June 1999 there were 334 providers offering Youth Training programmes, with 12,685 trainees undertaking programmes during the year. Approximately 35 percent of students go on to further education and training courses at the end of their course.

Research Institutions
The majority of research activity undertaken in New Zealand takes place within the universities. Other TEIs and some PTEs, however, also undertake research in their areas of expertise. Some of these institutions are only just starting to develop their research activities in a more structured way and are seeking to increase their staffs knowledge of research, to establish a research culture and service, and to develop a strategic plan for their research. Universities have been particularly successful in gaining contestable research funding from the Health Research Council and the Marsden Fund.

Central Steering Mechanisms Establishment and Recognition of Providers

The Education Act 1989 sets out the processes for the establishment and recognition of TEIs, PTEs, OTEPs, and GTEs. (The establishment and recognition of ITOs is covered by the Industry Training Act 1992.) The criteria for establishment, recognition, and disestablishment vary greatly between different entities. Criteria for PTEs are tightly controlled; but there are no criteria for the establishment of either GTEs or OTEPs.

Governance and Accountability

As Crown entities listed in the fourth schedule of the Public Finance Act 1989, TEIs are required to follow standard public-sector financial accountability processes and to report under Part V of that Act. Each institution is governed by its own council. The make-up and duties of these councils are specified under Part IV of the Education Act 1989, and their main functions in relation to the institution they govern are: to set the strategic direction and policies; to prepare a charter and approve statements of objectives; to ensure the institution is managed according to its charter and statement of objectives; to determine the programmes to be delivered; to set the budget including tuition fees; and to appoint the chief executive officer. In carrying out these functions, councils are required: to establish an academic board to advise them on matters relating to academic issues; to strive for the highest standards of excellence in education, training and research; to encourage the greatest possible participation of students in education, especially by traditionally disadvantaged groups; to use public resources responsibly; and to acknowledge the principles of the Treaty of Waitangi.

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The main functions of a chief executive officer are to implement council policies and decisions and to manage the academic and administrative affairs (including the employment of teaching and support staff).

Charters
Charters are the primary governance document for TEIs, with Section 184 of the Education Act 1989 requiring each TEI to have a written charter approved by the Minister of Education. Under the current regime for tertiary education, only TEIs are required to have charters. There are few legislative requirements for the content of charters. The document is intended to be a statement of the goals and purposes that are appropriate for the type of institution concerned (i.e. university, polytechnic, college of education, or wananga). The charter provides detail about the mission, character, goals, values, and purposes of each TEI. Section 190 of the Education Act 1989 enables the Minister to set out the kinds of matters in respect of which charters must specify goals and purposes and to do so by notice published in the Gazette [s190 of the Education Act 1989]. The Act states that such matters may include the standards of teaching and learning to be achieved by the TEI, and the codes or principles of conduct or administration to be observed in the TEIs management. This provision is not restrictive, and it does not prevent the Minister from specifying that more general matters be covered in charters. In addition, a Ministerial notice published in the Gazette need not apply to all TEIs; it could apply to groups of TEIs or even to specific TEIs. The Minister may also, through the Secretary for Education, propose any amendment to a TEIs charter on his or her own initiative (s187 of the Education Act 1989). This power was exercised in 1997 by the Minister of Education for statements on entrepreneurial activities carried out by TEIs. The charter is intended to reflect the core activities of an institution and its principles of operation. It incorporates a medium-term vision of the institution and its achievements, and is meant to ensure that risks are managed in order to achieve that vision. The Tertiary Advisory Monitoring Unit (TAMU) of the Ministry of Education, which manages the TEI charter process, envisages charters as documents which exist alongside, but also contribute to, an institution's strategic-planning process.

Statements of Objectives
Statements of objectives are the 3-yearly contracts that all TEIs and OTEPs must negotiate with the Ministry of Education as the basis of their bulk-funding70 allocation. All PTEs that seek funding through the EFTS-funding system must also negotiate a statement of objectives with the Ministry. A statement of objectives sets out what the provider is accountable for providing. It also includes a list of clear, specific, and measurable statements of services to be provided by the institution to its students and community. In addition, the statement of objectives establishes agreed outputs and performance indicators for measuring achievement of each output. Performance indicators include a range of non-financial performance indicators for: quantity of provision (student numbers, student profiles, staffing numbers, ratio of staff-to-students, and numbers and types of qualifications conferred); quality of provision (student satisfaction, successful completion or achievement rates, and surveys of graduate destinations); and equal educational opportunities (indicators for students with disabilities, and Maori and Pacific peoples).

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These grants are determined by a funding formula based on an equivalent full-time student (EFTS) unit, where one EFTS is defined as the student workload that would be normally carried out by a full-time student in a single academic year.

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Statements of Service Performance and Annual Reports

Statements of service performance are the means by which TEIs fulfil their obligations for reporting under the Public Finance Act 1989. TEIs must provide an audited report on actual performance in comparison with the performance measures set out in their statement of objectives. These statements of service performance are included in the institutions annual report to the Minister of Education. Similarly, where a grant has been paid to a PTE under s238A of the Education Act 1989, that PTE must provide an audited statement of service performance to the Secretary of Education.

Quality Assurance
Only those tertiary education programmes and providers that have been quality-assured by a quality-approval body are able to generate government funding, either through one of the funding systems or through student access to loans and allowances. To retain the funding, the standards of quality must be maintained. There are currently 4 quality-assurance agencies: The New Zealand Qualifications Authority (NZQA) is responsible for quality-assuring all PTEs, GTEs, and OTEPs. In addition it is responsible for approving all non-university degree programmes and accrediting providers to deliver these programmes. The New Zealand Vice-Chancellors Committee (NZVCC) is responsible for approving all programmes delivered within universities. It delegates the approval process to one of its standing committees, the Committee on University Academic Programmes (CUAP). The New Zealand Polytechnic Programmes Committee (NZPPC) operates under delegated authority to APNZ from NZQA to approve and accredit polytechnic sub-degree programmes. The Colleges of Education Accreditation Committee (CEAC) performs the same service for colleges of education, also under delegated authority to ACENZ from NZQA. All teacher-education qualifications also require approval by the Teacher Registration Board (TRB). The TRB has separate legislative authority to approve teacher-education qualifications for the purposes of registration.

Funding
Government support for tertiary education may be provided through one or more of the following: bulk grants to TEIs; tertiary education and training subsidies that provide funding for teaching and its associated research by subsidising EFTS places in approved qualifications; full or partial funding for on-the-job and off-the-job training (provided through the Industry Training Fund); community education funding provided for the delivery of non-formal community and adult education courses through schools and other agencies; tertiary education scholarships for Maori and Pacific tertiary students who meet established criteria; doctoral, enterprise and university bursary scholarships; student allowances; student loans; and training benefits.

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Central Structures The Minister and the Government

The main regulatory powers currently available to the Minister responsible for tertiary education are: to establish and disestablish four types of TEI (college of education, polytechnic, university and wananga), to determine whether a TEI can become a different type of institution, and to determine whether mergers between two or more TEIs should proceed (Education Act 1989 ss162, 164); to recognise GTEs, and to cease recognition of them (Education Act 1989 s159); to recognise OTEPs, and to cease recognition of them (Education Act 1989 s321); to recognise continuing education organisations, and to cease recognition of them (Education Act 1964 s97A); to influence the contents of each TEIs charter, and thus shape their character and goals (Education Act 1989 s190); to secure detailed information about the activities of TEIs, through their statements of objectives and other means (Education Act 1989 s203); to direct the councils of TEIs not to provide a course in cases where provision of that course would be contrary to the efficient use of national resources (Education Act 1989 s223); to determine funding at the aggregate level (i.e. across the system); to decide the level of funding for particular kinds of courses and the fundable length of each course (Education Act 1989 s199); to make bulk grants (Education Act 1989 s199); to fund particular activities of TEIs outside the bulk funding system (via special supplementary grants); to make grants to PTEs, and to set conditions on these (Education Act 1989 s321); to make grants to OTEPs and to set conditions on these (Education Act 1989 s321); and to make grants to continuing education organisations, and to set conditions on these (Education Act 1964 s97A). In addition, through agencies such as NZQA and Skill New Zealand, the Government has the capacity: to register PTEs and de-register them (Education Act 1989 s236, 237); to recognise ITOs (Industry Training Act 1992 s6); to grant the right to use protected terms such as university, college of education and polytechnic (Education Act 1989 s264); to administer education and training programmes (Education Act 1989 s271); and to fund ITOs, for the purpose of setting standards and managing training (Industry Training Act 1992 s10).

Ministry of Education
The Ministry of Education is responsible for: providing policy advice to the Minister of Education on all aspects of education; overseeing the implementation of approved policies; providing advice on the best use of resources allocated by the Government to education; and developing national guidelines. The Ministry negotiates funding for TEIs, and ensures accountability for the use of government funding and assets. It also administers legislation, manages property owned by the Crown, conducts research and collects education statistics.

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Within the Ministry of Education, divisions working with the tertiary education system include: Tertiary education policy (TEP). This division undertakes policy work across the tertiary education system, including adult and community education and the tertiary education interface with schools and industry. Tertiary Advisory Monitoring Unit (TAMU), formerly known as Tertiary Ownership Monitoring Unit (TOMU). This unit is responsible for managing the Governments interest in the 38 TEIs. It also has responsibility for monitoring the 4 Crown agencies or entities NZQA, Skill New Zealand, Teacher Registration Board, and Career Services. Tertiary Resourcing (TER). This is responsible for determining, allocating, and delivering tuition-subsidies and supplementary grants to tertiary education providers. It is responsible for the approval of programmes for which student loans and allowances may be paid. Tertiary Information Project (TIP). This special project has been set up to improve the standard of information about the tertiary education system. New tertiary-education information requirements include the collection of student-based data and a national register of quality-assured providers, qualifications, and courses. Data Management and Analysis. This is part of the Ministry of Educations strategic information and resourcing group. It is responsible for collecting and processing data from tertiary education providers, monitoring trends in educational processes and outcomes, and reporting on roll projections, financial forecasting, and indicators of educational performance.

Skill New Zealand

Skill New Zealand is a Crown agency. It works under a document of accountability to the Minister of Education and is governed by a board also appointed by the Minister. Its focus is on the transition from education and training to work, and on increasing access to training in the workplace. Skill New Zealands main functions are to administer the Governments industry-training policy and to implement a range of initiatives designed to build a highly skilled and adaptable workforce. A key development focus is on integrating capability skills (such as literacy, numeracy, and communication) into work programmes. In addition to commissioning training through ITOs, Skill New Zealand also manages the funding and monitoring of: Training Opportunities Programme (TOP); Youth Training; Skill Enhancement; and English for Migrants (a programme offering English language training for migrants, targeted towards business migrants and applicants in the general-skills category).

Department of Work and Income

Work and Income New Zealand administers the Governments student loans and allowances scheme. It is also responsible for providing fees-subsidies for targeted groups such as domestic purposes and sickness beneficiaries, through the Training Incentive Allowance Scheme.

New Zealand Qualifications Authority

The New Zealand Qualifications Authority (NZQA) is a Crown agency, and currently reports directly to the Associate Minister of Education (Tertiary Education).

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Its functions are: to co-ordinate all qualifications in post-compulsory education and training from senior secondary to degree level, so that they have a purpose and relationship to each other that is understood by both students and the public; to oversee the setting and regular review of standards as they relate to qualifications; to ensure that New Zealand qualifications are recognised overseas, and that overseas qualifications are recognised in New Zealand; and to administer national examinations, both secondary and tertiary. NZQA is the key quality-assurance body for all non-university qualifications. It is responsible for approving programmes (including non-university degrees), and for accrediting institutions to offer these programme. NZQA has delegated these quality-assurance processes: to the New Zealand Polytechnics Programme Committee (NZPPC), in the case of polytechnic qualifications; and to New Zealand Colleges of Education (CEAC), in the case of college-of-education qualifications.

Career Services
Career Services is a Crown entity. It was established in July 1990 and is directly responsible to the Minister of Education (who appoints a Board to oversee its work). Career Services is responsible for providing information and advice to targeted groups to help people choose careers, work, education, and training. Its clients include the Minister of Education, the Associate Minister (Tertiary Education), Work and Income New Zealand, Accident Compensation Corporation, and a range of individuals and organisations that pay fees for services. The Minister of Education purchases various information and advisory services from Careers Services. These include: development and provision of career information; promotion of the development and accessibility of career information to training and other organisations; advice to individuals on how best to use career information; and provision of career-planning services to client groups who are unlikely to access such assistance through other channels.

Teacher Registration Board

The Teacher Registration Board (TRB) is a Crown entity established under the Education Act 1989. It has responsibility for: maintaining a register of teachers and determining policies for teacher registration; approving registrations, and issuing practising certificates and limited authorities to teach; establishing the policy for removal from the register, deciding whether a teachers name should be removed from the register, and informing school boards of trustees of the names of teachers with cancelled registrations or limited authorities to teach; and ensuring that teachers are satisfactorily trained through the accreditation and approval of teacher education programmes and providers. There is currently legislation before Parliament to replace the TRB with a new body, the Education Council. The Council would carry out the functions of the TRB, and also have other powers and responsibilities.

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Appendix 5: The Provision of Teacher Education

Background
In New Zealand, the education of teachers has followed a tradition in which teachers are trained at stand-alone tertiary education institutions. Secondary teachers have usually completed a degree in a university, followed by a year of professional study at a college of education. Departments of education within universities have provided non-professional qualifications such as a Diploma of Education and specialist or post-graduate study for teachers. Over the years there have been various attempts either to bring teacher education into the universities or to encourage greater co-operation between universities and colleges of education. From the 1960s, universities and teachers colleges (as they were then called) began to co-operate in the provision of Bachelor of Education degrees; and by the 1980s each major centre offered a 4-year Bachelor of Education degree as a joint programme. In the New Zealand education reforms of the late 1980s, the Picot Report (The Report of the Taskforce to Review Education Administration, 1988) recommended that all colleges of education become semiautonomous schools of teacher education within the universities. By contrast, the Hawke Report (The Report of the Working Group on Post-Compulsory Education and Training, 1988) left it up to individual colleges to decide whether to integrate with a university or to remain autonomous. The subsequent Government policy statement on post-compulsory education and training, Learning for Life (1989), followed the Hawke Reports recommendation. More significantly, it also allowed others (including universities, polytechnics, and private71 sector organisations) to provide teacher education. As a result, there are now a considerable number of programmes that offer pre-service education and training to primary- and secondary-school teachers and programmes for early-childhood teacher training have 72 proliferated to an even greater extent.

Proliferation of Teacher Education Programmes

In many ways, teacher education is an instructive microcosm of the ways in which the competitive ethos has affected tertiary education. In 1990, teacher education was based on a single model and was carried out only in the 6 colleges of education. Now it is now extremely varied, particularly in relation to primary and early childhood education. There are pathways to degrees as well as diplomas, and there are quite a number of short courses for graduates of both primary and secondary teaching. There are 19 providers offering primary-teacher education programmes approved by the Teacher Registration Board. The providers are: 4 colleges of education; 4 polytechnics; 4 universities; 2 wananga; and 5 PTEs. (The PTEs are Masters Institute, Te Wananga a Takuira o Nga Kura Kaupapa Maori o Aotearoa, Anamata Private Training Establishment, Bethlehem Institute of Education, and the New Zealand Graduate School of Education.) Fifteen providers offer secondary-teacher education programmes approved by the Teacher Registration Board. The providers are: 4 colleges of education; 4 polytechnics; 5 universities; and 2 PTEs. (The PTEs are Bethlehem Institute of Education and the New Zealand Graduate School of Education.) The early childhood scene is even more complex and diverse. There are 20 providers of 3-year diplomas or degrees whose programmes are approved by the Teacher Registration Board. The providers are: 4 colleges of education, 8 polytechnics, 3 universities, and 5 PTEs or OTEPs. (The PTEs/OTEPs are New Zealand Tertiary

71 72

Since then, 2 colleges of education have amalgamated with universities (in Hamilton and Palmerston North), and 4 have remained autonomous. A further result of this opening up of teacher education provision has been a reduction in the length of pre-service degree programmes for primary and early childhood teachers (from 3 years to 4).

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College, Bethlehem Institute of Education, Te Tari Puna Ora o Aotearoa/NZCA, New Zealand College of Early Childhood Education, and Rangi Ruru Centre for Advanced Studies.)73 In addition, there are 12 more providers of early childhood training below the diploma level. Their programmes (which do not require the approval of the Teacher Registration Board) are directed at areas of early childhood education such as nannying and sub-supervisory positions within childcare centres, playcentres, and so forth. As well, many other early childhood training programmes that are not approved by the Teacher Registration Board are directed at Maori and Pacific early childhood education centres, which currently do not have the same certification requirements as other centres. More recently, there has been a shift away from provider-developed programmes towards the new National Certificate in Early Childhood Education, which has resulted in a slowing in the increase of early childhood training programmes. Interestingly, it has been mainly PTEs and colleges of education that have moved to offer this qualification. The tables on the following pages list the providers of teacher education and training programmes for primary, secondary and early childhood education.

73

This increased breadth of provision of programmes at diploma/degree level has been primarily within the public sector although some PTEs are also offering programmes approved by the Teacher Registration Board (two of them at more than one level).

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PROVIDERS OF PRIMARY- AND SECONDARY-TEACHER EDUCATION PROGRAMMES APPROVED BY THE TEACHER REGISTRATION BOARD * TABLE A5-1 Primary-Teacher Education
Northland Polytechnic (Te Waoku Programme only) University of Auckland Auckland College of Education Masters Institute Te Wananga a Takuira o Nga Kura Kaupapa Maori o Aotearoa UNITEC Institute of Technology Te Whare Wananga o Awanuiarangi Anamata Private Training Establishment Bethlehem Institute of Education School of Education, Waikato University Massey University School of Education Wanganui Regional Polytechnic Te Rangakura bilingual programme Te Wananga O Raukawa Wellington College of Education Christchurch College of Education NZ Graduate School of Education Christchurch Polytechnic Dunedin College of Education University of Otago

Secondary-Teacher Education
Northland Polytechnic University of Auckland Auckland College of Education Auckland University of Technology Bethlehem Institute of Education Waikato University School of Education Massey University College of Education Wairarapa Community Polytechnic Wellington College of Education Whitireia Polytechnic Christchurch College of Education NZ Graduate School of Education Dunedin College of Education UNITEC Institute of Technology University of Otago *As at October 2000.

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EARLY CHILDHOOD EDUCATION PROVIDERS FUNDED BY THE MINISTRY OF EDUCATION * TABLE A5-2 Number of Number of approved non-approved National programmes programmes Certificate
5 1 2 3 5 1 1 1 1 1 1 1 1 1 1 2 1 1 2 1 33 20 2 1 2 1 1 1 2 1 3 1 1 1 1 2 20 14 1 1 1 1 1 1 1 1 8 8

Provider
Aoga Fa'afaia'oga O A'oga Amata Auckland College of Education Auckland University of Technology Bay of Plenty Polytechnic Bethlehem Institute of Education Christchurch College of Education Dunedin College of Education Eastern Institute of Technology Endeavour Skills 2000 Limited Horizon Early Childhood Training Ltd Insight Limited Kaat Trust Manukau Institute of Technology Massey University NZ Childcare Association NZ College of Early Childhood Education NZ Tertiary College The Open Polytechnic of New Zealand Porse ECE Training (NZ) Ltd Rangi Ruru Centre for Advanced Studies SEEDS Teacher Training International Ltd Taranaki Polytechnic Te Kohanga Reo Trust Wellington Te Wananga O Aotearoa UNITEC Institute Of Technology Universal College of Learning University of Waikato Waiariki Institute of Technology Waikato Polytechnic Wellington College of Education Whitireia Community Polytechnic Workforce Consultants Limited Number of programmes Number of providers

Type
PTE CoE University Polytechnic PTE CoE CoE Polytechnic PTE PTE PTE PTE Polytechnic University OTEP PTE PTE Polytechnic PTE PTE PTE Polytechnic OTEP Wananga Polytechnic Polytechnic University Polytechnic Polytechnic CoE Polytechnic PTE

Number of providers of ECE programmes Number of colleges of education Number of universities Number of polytechnics Number of wananga Number of PTEs/OTEPs Total number 4 3 10 1 14 32 4 3 8 5 1 2 5 1 5 5 1 2

* For the year 2000.

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EARLY CHILDHOOD EDUCATION PROGRAMMES FUNDED BY THE MINISTRY OF EDUCATION * TABLE A5-3
Aoga Fa'afaia'oga O A'oga Amata Auckland College of Education PC1273 Aoga Amata Certificate in ECE PC1754 Aoga Amata Diploma in ECE AC1027 Early Childhood Education PIECCA AC1054 Bachelor of Education (Teaching) Early Childhood AC1067 Diploma of Teaching (ECE) Intensive Programme AC1077 Diploma of Teaching (ECE) AC1079 Diploma of Teaching Early Childhood Pacific Islands ACEE03 Early Childhood Teacher Education/ B Ed AK3525 Certificate In Early Childhood Education AK3533 Certificate of Intro to Early Childhood Care & Education AK3594 Bachelor of Education (Early Childhood Teaching) BP3138 Certificate in Early Childhood Education and Care PC1993 Diploma of Teaching (Early Childhood Education) PC3033 Bachelor of Education (Early Childhood Education) CE1024 Bachelor of Teaching and Learning (Early Childhood) CEEE03 Diploma of Teaching and Learning (ECE) CEES02 Graduate Diploma of Teaching and Learning (ECE) NC5549 National Certificate in Early Childhood Education and Care DN1016 Bachelor of Education (Teaching) (Early Childhood) DN1018 Bachelor of Education (Teaching) 0-8 years (Early Childhood) DNEE03 Diploma of Teaching (Early Childhood) DNEE04 Diploma of Teaching (Early Childhood)/Bachelor of Education DNES02 Diploma of Teaching (Early Childhood) 2-year shortened course NC5549 National Certificate in Early Childhood Education & Care HB3823 Diploma of Teaching (Early Childhood Education) PC1798 Endeavour Skills Professional Early Childhood Certificate NC5549 NC in ECE and Care (L5)

Auckland University of Technology

Bay of Plenty Polytechnic Bethlehem Institute of Education

Christchurch College of Education

Dunedin College of Education

Eastern Institute Of Technology Endeavour Skills 2000 Limited Horizon Early Childhood Training Ltd Insight Limited Kaat Trust Manukau Institute of Technology Massey University

NC5549 National Certificate in Early Childhood and Care Level 5 PC1717 Early Childhood Education MN4307 MIT Diploma of Teaching Early Childhood Education MY1032 Certificate in Early Childhood Education MY1033 Certificate in Early Childhood Development MY6016 Early Childhood Pre-service Teacher Education Programme PCEE03 Diploma of Teaching (ECE PC1337 Diploma of Teaching (ECE) Year 2 PC1356 Diploma of Teaching (ECE) Year 3 PC1413 Diploma of Teaching (ECE) Year 1 PC1250 Early Childhood Teachers Certificate PC1778 Diploma of Teaching (Early Childhood Education) PC2604 Diploma of Teaching ECE Distance Learning PC2773 Early Childhood Teachers Certificate Distance Learning

NZ Childcare Association NZ College of Early Childhood Education

NZ Tertiary College

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The Open Polytechnic of New Zealand

NC5222 NZ Certificate in Family Day Care: Caregivers OP5420 Certificate in Childcare OP5421 Certificate in Early Childhood Education OP7050 Diploma of Teaching (Early Childhood Education) OPEE03 Diploma in Teaching (Early Childhood Education) NC5549 National Certificate in Early Childhood Education and Care PCES02 Diploma of Teaching (Early Childhood Education)

Porse ECE Training (NZ) Ltd Rangi Ruru Centre for Advanced Studies SEEDS Teacher Training International Ltd

NC5549 National Certificate in Early Childhood Education & Care L5 PC1773 Early Education Vocational Diploma PC1774 Early Education Management Diploma TK9802 TP Diploma of Teaching Early Childhood Education TK9916 TP Certificate in Professional Childcare PC1699 Tino Rangatiratanga Whakapakari Programme AIEE03 Te Timatanga o te Whakatipuranga o te Tamaiti NC5549 National Certificate in Early Childhood Education Level 5 MA4124 Certificate in Early Childhood Education and Care Level 3 WIEE03 3-year Early Childhood Programme WIEE04 Early Childhood Programme 4th Year WIEM03 Bilingual 3-year Early Childhood Programme WR2757 Diploma in Teaching Early Childhood Education WK2434 Diploma of Teaching (Early Childhood Education) WGED03 Bachelor of Education (Teaching) ECE WGEE03 Diploma of Teaching (Early Childhood Education) PR4657 Diploma in Pacific Islands Early Childhood Education PR4659 Diploma of Teaching (Early Childhood Education) PR4687 Whitireia Early Childhood Bridging NC5549 National Certificate in Early Childhood Education and Care

Taranaki Polytechnic

Te Kohanga Reo Trust Wellington Te Wananga O Aotearoa UNITEC Institute of Technology Universal College of Learning University of Waikato

Waiariki Institute of Technology Waikato Polytechnic Wellington College of Education

Whitireia Community Polytechnic

Workforce Consultants Limited

* For the year 2000.

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Level 20, 125 The Terrace PO Box 10-906 Wellington, New Zealand ph: +64-4-472-9723, fax: +64-4-471-5349 www.teac.govt.nz, enquiries@teac.govt.nz